Mortgage Rates for Las Vegas Real Estate are always shifting, driven in part by multiple factors. For the most recent week of December 21-15th one of the most important variables that we want to talk about is the 10 year Treasury Security Note yield climbed from 3.54% at the beginning of the week to 3.75% two days later and based on the latest Bloomberg reports, ended the week at 3.80%. The implications for Mortgage rates for Las Vegas Real Estate could be significant, like other markets around the country.
Mortgage Rates for Las Vegas Real Estate
Why are these interest rates rising? The first reason is that the overall financial markets are in a positive mood about near term economic issues. Today’s news about the uptick in Manufacturing coupled with employment numbers and consumer confidence are also impacting Mortgage Rates for Las Vegas Real Estate.
Second, as the stock market continues and the overall economy continues to improve that means that interest rates will typically begin to rise. There seems to be some consensus from analysts that the improving economy could cause the Federal Reserve to minimize its support of lower interest rates and they could even raise the Fed Fund rate – Mortgage Rates for Las Vegas Real Estate are impacted by these fluctuations.
Narrowing Spread for 10 Year Note & 30 Year Mortgage Rates
We have noted a narrowing spread between the 10-year note and the 30-year average mortgage rate, suggesting that Las Vegas mortgage rates could rise at some point. Even more significant is the spread between 2-year notes and 10-year notes, which makes up what is called the “yield curve.”
A year ago, that spread was 1.27%. Now, though, the spread has widened very significantly to 2.81%. Before the recession, the yield inverted rather prophetically, with short-term rates lower than long-term rates, a condition that sometimes precedes an economic downturn.
Our analysis of Mortgage Rates for Las Vegas Real Estate is that current economic factors could slowly push rates higher, although this is extremely difficult to predict. But, we are continuing to keep any eye on Mortgage Rates for Las Vegas and the underpinning financial activities that have the potential to impact them.
