Most people in the United States, at some point in their lives, make a decision to buy a home with a mortgage. When they do so, they usually mortgage part of the cost of that home purchase. With that mortgage comes a mortgage rate.
National data show interest rates on mortgages increased in December 2013.
Contract mortgage interest rates increased 0.03 percent from November to December, according to an index of new mortgage contracts. According to the Federal Housing Finance Agency (FHFA), the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 4.25 percent for loans closed in late December. The index is calculated using FHFA’s Monthly Interest Rate Survey. The contract rate on the composite of all mortgage loans was 4.25 percent, up 3 basis points from 4.22 in November.
May 2013 that same rate was at 3.5 percent and home prices were historically lower in Vegas!
Average price per square foot for Las Vegas NV is now $122, an increase of 34.1% compared to the same period last year. The median sales price for homes in Las Vegas NV for Oct 13 to Jan 14 was $165,000 based on 4,502 home sales. Compared to the same period one year ago, the median home sales price increased 13.8%, or $20,000, and the number of home sales decreased 25.9%.
10,559 homes in Vegas are in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The average listing price for homes for sale in Las Vegas NV was $328,264 for the week ending Jan 22, which represents a decrease of 0.7%, or $2,441, compared to the prior week. Popular neighborhoods in Las Vegas include Las Vegas and Summerlin, with average listing prices of $251,942 and $352,750.
For every $100,000 in home price, the higher rate adds about $40 or so a month to the cost of a 30-year fixed-rate mortgage, compared to when a 30-year fixed-rate was at 3.5 percent. Those buying a $250,000 home with a 20 percent down payment have a $80 higher monthly mortgage payment.
Many mortgage bankers agree that rates will continue to increase over the next twelve months as the Fed begins to taper.
Interest rates are typically locked in 30-45 days before a loan is closed. Consequently, December data reflect market rates from mid-to-late November. The effective interest rate was 4.40 percent, up 2 basis points from 4.38 percent in November. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.
FHFA’s interest rate survey shows the average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.54 in December, an increase of 6 basis points. The average loan amount for all loans was $277,600 in December up $12,700 from $264,900 in November.
FHFA will release January index values Thursday, February 27th, 2014.