Las Vegas mortgage payments have jumped nearly 50 percent

Mortgage payments in the Las Vegas Valley have increased nearly 50 percent over the past two years, according to a new study.

A Construction Coverage study found that since 2022, the average mortgage rate in the U.S. went from 3.8 percent to 6.8 percent, while the median home price for a single-family residence went from $316,778 to $347,716.

In the Las Vegas metro, the median home price climbed from $393,802 in 2022 to $413,485 today, the study said. “Taking this median home price and the average 30-year fixed mortgage interest rate together, estimated monthly mortgage payments in the Las Vegas metro have increased by 47.2 percent in just two years,” the study said.

The average Las Vegas Valley homebuyer had an estimated monthly mortgage payment of $1,461 for a median-priced single-family home in 2022, according to the study, but that same home would have a monthly payment of $2,151 in March of this year because of the higher prices and mortgage rates.

Mortgage rates are the highest they have been since October 2023, and before that, all the way back in 2002.

Redfin said in its latest report that elevated mortgage payments are directly contributing to a rise in rental payments across the country.

“The average 30-year-fixed mortgage rate is 6.82 percent, below the 23-year high of almost 8 percent hit in October, but still more than double the all-time low of 2.65 percent hit during the pandemic,” the report said. “Many people are delaying home purchasing plans because monthly payments for homebuyers are near their record high. That’s bolstering rental demand, and as a result, rent prices.”

Even still, among all large U.S. metros, the Las Vegas metro has experienced the 13th smallest estimated mortgage payment increase over the last two years, according to the study.

Redfin said rental prices aren’t growing as fast as they were during the pandemic, but the outlook is not strong right now for the entire real estate industry.

“Housing costs are so high that many Americans can’t afford to buy homes, but rents are also elevated, putting a lot of people searching for housing between a rock and a hard place,” the report said. “The median asking rent in March was just 3.3 percent ($67) below the record high of $2,054 hit in August 2022.”

Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.