Navigating Home Loan Interest Rates in Nevada in 2024

Purchasing a home is one of the most significant financial decisions you can make. For many homebuyers in Nevada, figuring out current mortgage rates is essential to determine if you can afford your dream home. With rates frequently changing, it’s crucial to stay up-to-date on the latest home loan interest rates in Nevada

As an expert in the Nevada real estate market, I’m often asked – what are the current home loan interest rates in Nevada? Here’s what you need to know about navigating mortgage rates when buying a home in Nevada in 2024.

Overview of Current Mortgage Rates in Nevada

In June 2024, average 30-year fixed mortgage rates in Nevada are around 7.25%, while 15-year fixed rates are about 6.50%, according to Bankrate’s mortgage rate survey. These rates are significantly higher than the historic lows seen during the pandemic in 2020 and 2021 but remain competitive compared to 2022.

To give you a better sense of how Nevada mortgage rates have shifted over the past few years

• In June 2021, average 30-year fixed rates were 2.98% and 15-year fixed rates were 2.34%.

• In June 2022, average 30-year fixed rates were 5.78% and 15-year fixed rates were 4.73%.

• Now in June 2024, average 30-year fixed rates have climbed to 7.25% and 15-year fixed rates are up to 6.50%.

Clearly, we’ve experienced quite a surge in interest rates, making home affordability more challenging. However, Nevada homebuyers can still secure reasonable fixed rates below 7.5% for both 30-year and 15-year loans.

Factors Impacting Nevada Mortgage Rates

Several key factors drive fluctuations in Nevada mortgage rates:

The Federal Funds Rate

This is the interest rate banks charge each other for overnight lending. When the Federal Reserve raises this rate, mortgage rates tend to rise in tandem. The Fed has aggressively hiked rates in 2022 and 2023 to combat high inflation, leading to higher mortgage rates. Additional Fed rate hikes are expected in 2024 as well.

The 10-Year Treasury Yield

This measures the return on 10-year U.S. Treasury bonds. As yields rise, mortgage rates typically rise too. Investors have flocked to bonds in 2022 and 2023 amid stock market volatility, pushing yields up.

Nevada Housing Market Conditions

When demand is high and housing inventory low, sellers can ask higher home prices. This leads to higher mortgage rates in Nevada to cover the bigger loan amounts. With Nevada facing low inventory, rates are impacted.

Your Credit Score and Profile

Borrowers with higher credit scores, lower debt-to-income ratios, and sizable down payments generally receive lower mortgage rates from lenders. Improving your credit and financial profile can help you secure a better rate.

As you can see, rate fluctuations involve both national and local market factors. Working with a knowledgeable Nevada lender is essential to navigate rate volatility and the state’s unique dynamics.

Breaking Down the Types of Mortgages in Nevada

When getting a Nevada home loan, you’ll choose between fixed-rate or adjustable-rate mortgages. Here’s an overview of the most common types of mortgages available in Nevada and current rate ranges:

• Fixed-Rate Mortgages – These keep the same interest rate for the full loan term. The 30-year fixed is most popular, but 15-year fixed mortgages are also available. 30-year fixed rates are around 7.25%, while 15-year fixed rates are about 6.50% in Nevada presently.

• 5/1 Adjustable-Rate Mortgages (ARMs) – ARMs have an initial fixed interest rate for 5 years which then adjusts annually. This means lower rates at first but uncertainty after the 5-year period. 5/1 ARM rates are around 6.73% now but will likely rise after year 5.

• FHA Loans – These feature low down payments (3.5%) and more flexible credit requirements. However, you’ll pay mortgage insurance. Current 30-year FHA rates are around 7.01% in Nevada.

• VA Loans – For qualifying veterans and military members, VA loans offer zero down payment options. But you will incur a VA funding fee. VA rates are around 7.08% now.

• USDA Loans – Ineligible rural areas, USDA loans are zero down payment options. However, income limits apply. USDA rates align with current conventional fixed rates.

• Jumbo Loans – Jumbo mortgages fund pricier homes above conforming loan limits. They require larger down payments but boast competitive rates. Jumbo 30-year fixed rates are around 7.16% now.

Consider your budget, financial situation, and plans for the home to decide which mortgage suits you best.

Tips for Getting the Lowest Rate on a Nevada Home Loan

While rates are rising overall, you can still take steps to secure the lowest interest rate possible on a Nevada home loan:

• Shop around – Compare mortgage rates and fees from at least 3 lenders. Even small rate differences can save thousands over your loan.

• Improve your credit – Lenders offer better rates to borrowers with credit scores of 740 or higher. Pay down debts and dispute errors to boost your score.

• Put at least 10% down – The more you put as a down payment, the better rate you can obtain, as you’re less of a risk to lenders.

• Lower your DTI – To calculate DTI, add up your monthly debts, including the new mortgage payment. Divide by gross monthly income. Aim for a DTI below 45%.

• Pick shorter loan terms – The shorter the term, the lower the interest rate. Opt for a 15-year fixed over a 30-year to snag a better rate.

• Make a larger down payment – Down payments above 20% mean you can avoid costly private mortgage insurance.

• Lock in your rate – Once you find a competitive rate for your situation, lock it in quickly before it rises further.

With some effort, Nevada homebuyers can still lock in favorable rates below 7% on fixed-rate mortgages in the current market.

Useful Resources for Nevada Homebuyers

Here are some recommendations on where to turn for up-to-date info on Nevada mortgage rates, home affordability, and real estate trends:

• Bankrate – One of the web’s best resources for national, state, and local mortgage rate data. Their rate analysis empowers borrowers.

• Nevada Housing Division – Provides homebuyer education, down payment assistance, and affordable programs for Nevada residents.

• National Association of Realtors – Tracks metro-level housing affordability stats and economic indicators influencing Nevada’s market.

• Zillow – Offers neighborhood home value changes and sale trends for cities and towns across Nevada.

• Redfin – Provides extensive housing market data for both buyers and sellers in the state of Nevada.

• Local Nevada Lenders – Connect with reputable local lenders familiar with the Nevada real estate landscape when getting pre-approved. They can guide you through rate and home shopping nuances.

The bottom line is that mortgage rates are expected to remain elevated in 2024 compared to the past couple years. But savvy Nevada homebuyers can still secure reasonable fixed rates below 7.5% with some effort. Staying informed on market conditions and interest rate drivers is the key to navigating the home loan process.