Would-be mortgage borrowers have rushed to refinance their loans and even weighed plans to buy homes following the government’s move this week to loosen consumer lending.
National Lenders like Quicken Loans indicated on Tuesday when the government announced its new plans they received $400 million worth of mortgage applications for that day alone, more than quadrupling the number of loans from the day before.
Las Vegas Real Estate Becomes Bailout Pie
Almost immediately after the Federal Reserve announced plans Tuesday to buy a sizable chunk of mortgage-based securities, interest rates dropped to the mid-5 percent range and stayed there.
These recent moves by the Feds are giving Las Vegas Real estate purchasers a nice taste of the bailout pie – up until now most of the Fed’s impact has been aimed at lenders or at distressed borrowers. Mortgage rates on a 30-year fixed rate mortgage dropped to 5.76 earlier this week – the lowest levels since February of this year.
Feds Are Driving the Las Vegas Real Estate Market
Since July of this year when we got hit by this financial Tsunami the Federal Reserve has been aggressively buying up assets and aggressively pumping huge amounts of money into the system to stimulate real estate markets.
Total Assets Now Held by Federal Reserve
We believe the drop in mortgage rates and massive infusion of capital by the Fed of $2.23 Trillion dollars is starting to impact the local Las Vegas Real Estate market.
