January 2025 Monthly Mortgage News & Market Update

Program Update:

Fannie Mae and Freddie Mac announced their official loan amount for the year 2025 is $806,500.
HUD announced FHA’s new loan limit for 2025 is $524,225. This could be slightly higher for Clark County NV.

Financial Markets- Bonds (Mortgage Rates)

January 2025 marks the 3 year anniversary of mortgage rates leaving the 2’s and 3’s in a trail of dust, and its now been nearly 2.5 years where mortgage rates have hovered between low 6’s and high 7’s. Other than a few moments here and there, the average 30 year fixed rate mortgage hugged closely to 7%. With the uncertainty of the elections also in the rear view mirror, there really isn’t any likely future occurrences that will be guaranteed to lower interest rates, so I have included a 5 bullet point video on what we can root for this year if we want to see rates drop to high 5’s low 6’s.

https://www.tiktok.com/@maltesemg/video/7462430164043975978?_r=1&_t=ZT-8tLFWTYwlY6

Southern Nevada Real Estate

The temporary dip in interest rates in the month of September seemed to have given the boost the market needed to finish the year strong. Southern Nevada finished the year with 35,386 home sales, about 1,000 more than 2023. In the last 4 months of the year, sales for 2024 outpaced the same 4 months from 2023 by over 1400 sales. I don’t think there is any doubt that lower rates would lead to more sales. Also interesting, while the number of transactions jumped up with lower rates, values DID NOT. It’s a small sample size but gives hope that lower rates will not only lead to more buyers but more sellers looking to trade up or down.

https://www.lawyerstitlenv.com/market-updates?mkt_tok=MzkzLVJFWS04NDcAAAGYMwPWfPfaTbgmhc4TDviJfrSO4VL-S1SFowfO4eLDkYMtlGwnWCfXCD0eZ0-W7pcFhnhKCCVqPnP1LIuu_Pqq_LGzOtlbpxh6fewsw654CIIu