Financial Markets- Bonds (Mortgage Rates)
The S & P 500 treaded water for most of January, rebounding this week after more tariff threats from the holiday weekend. The S&P P 500 is on the precipice of breaking through the 7,000 point barrier, currently nestled at 6,926.
While the stock market has been fairly calm, the bond market, and in particular mortgage backed securities, is experiencing far more volatility.
On January 14th the Trump Administration announced the order for Fannie Mae and Freddie Mac to purchase 200 billion dollars in mortgage-backed securities to help lower mortgage interest rates. The announcement alone influenced a rally in mortgage backed securities and mortgage rates dropped nearly ¼ percent in a day. Several days later The Trump Administration threatened more tariffs on Europe if a deal couldn’t be reached on Greenland. Because tariffs are inflationary, mortgage backed securities sold off and we saw the 10 year US T go from 4.1 to 4.3…and mortgage rates just as quickly as they went down .25% went up .5%.
I would expect mortgage rates to drift back down after an agreement can be made regarding Greenland.
Southern Nevada Real Estate
That’s a wrap on 2025 real estate, and December sales, while better than the prior month, closed the books for 2025 making it the slowest year since the great Recession (2009) for home sales. The median priced home dipped again, but for the 3rd consecutive month so did inventory. The median price of $470,000 for December marked the lowest median price all year and down $5,000 from December of 2024. While this is hardly considered a price correction it does provide a chance for wages to catch up to the home prices in Clark County that have gone up on average over 6% a year.
December Home Sales
- Total: 2,655
- Condos: 302
- Townhomes: 321
- Single Family Residences: 2032
- Inventory = 8210…when divided by resale SFR sales we come up with 4 months supply of homes)
- Median Priced Home $470,000
2025 total home sales: 33,481
2024 total home sales: 35,387
2023 total home sales: 34,411
For context, before any COVID-related impacts, Clark County, Nevada recorded 50,350 sales in 2018. Current transaction volume is roughly 50% below what would historically be considered a “normal” level.
LT Nevada - Market Updates
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