Rising interest rates and price appreciation are slowing mortgage originations in Las Vegas, but a growing percentage of homeowners here are bucking the national trend by refinancing their homes and getting home equity lines of credit, according to a research firm.
The interest rates surpassed 5 percent for the first time since the downturn of the market in October 2008, when rates were 6.5 percent, she said.
Someone with a credit score in the mid-600s can get a rate of 5.375 percent with a 5 percent down payment.
“People trying to buy homes are running into problems because it’s cutting into their affordability,” Gatling said.
It is normal during this time of year for the market to slow down, but with rising rates and uncertainty in the political environment, you are going to see a lot of people on the sideline to watch what happens.” What will help Las Vegas originations is people relocating here for jobs who won’t be deterred from buying in a market that has lower home prices than where they currently live, Hulsey said.
The total number of originations in Las Vegas during the second quarter was 20,802, a gain of 7 percent over the second quarter of 2017.
That was driven by a gain in refinance, up 14 percent to 7,290, and home equity lines of credit, up 28 percent over the past year to 1,817.
Both of those large gains in Las Vegas go against the national trend, Blomquist said.
Blomquist attributes price appreciation in Las Vegas for the gains in refinancing and home equity lines of credit.
Hulsey said they’re seeing more Nevada customers turn to home equity products for “home improvements, make large purchases or consolidate other debts.” All of the second-quarter totals in Las Vegas are well below the peak of the market, according to ATTOM.