Will interest rates be the next big stick that clubs Las Vegas real estate? This week the rate for 30-year home loans jumped to an eight month high of 5.21% versus 4.87% a year ago. If Las Vegas interest rates continue to rise under the weight of America’s debt mountain (where else can they go?) then it will further reduce the purchasing power of potential homeowners, and be a threat to the financial health of those borrowing on variable rates.

Don’t forget that the government stimulus measures are not permanent, and if they are taken away in a high interest rate environment then the pain may only have been postponed, not avoided. Yes Las Vegans more pain. Look beyond the Las Vegas Valley to treasury yields and you will see that they have been climbing in recent week as demand declines.

Further reading:
http://www.lvre.com/las-vegas-real-estate/