Financial Markets- Bonds (Mortgage Rates)
Not so easy come, easy go. Mortgage rates steadily went higher as the bond market eroded over the past 45 days. The 10 year US Treasury fell 7/10ths of a percent in 45 days and gave back all of the gains since the middle of September. Remember, “They” (the fed) didn’t do this. Mortgage rates are tied to certain bonds in the bond market. There have been more investors selling bonds than buying, that is how mortgage rates rise. So, why are investors selling bonds and not buying? The sell off started with the jobs report that came out on October 4th, where according to the report, 254,000 jobs were created for the month of September, far exceeding market expectations of 150,000 jobs. More favorable reports continued to roll out throughout the month signaling the economy is on solid ground and making it less likely for any further Fed rate cuts.
The average 30 year fixed mortgage now sits back near 7%. (Remember that the orange line represents Freddie Mac’s average 30 year fixed, which is reporting today at around 6.54%, because its an average of loans locked in the several weeks prior).
Southern Nevada Real Estate
September home sales data compiled by Lawyer’s Title shows that 2024 home sales outpaced 2023 September sales by a smidge. 2024 sales still lag behind 2023 sales at the same time of the year by about 1,000 sales. September home sales as follows:
· 2,040 Single Family Residences
· 323 condos
· 347 Townhomes
· 289 of these sales were new homes
· 35% paid cash
· Inventory continues to rise with 7,728 single family homes on the market. With roughly 2,000 transactions per month this translates into nearly 4 months of inventory
· The median priced home landed at around $479,900 with the averaged priced home at $599,049
https://www.profilez.com/downloads/titleco/lv-lawyers/market-stats-report.pdf
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