- Nationwide home purchase applications rose 13% year-over-year. This happened even though many expected high mortgage rates to stop buyers.
- Pending home sales reached 391,488 across the country. This shows buyers are feeling more confident again.
- Mortgage rates are still high above 7%. But buyers are using different ways to finance, such as adjustable-rate mortgages (ARMs) and rate buy-downs.
- Over 35% of homes have lower prices listed than before. This means sellers might have less control, but it doesn’t mean the housing market is crashing.
- The number of homes for sale in key neighborhoods in Las Vegas is going up. This gives buyers new chances.
Home sales in the United States, especially in Las Vegas, are stronger than many experts thought they would be in 2025. This is true even with unusually high mortgage rates. Borrowing costs are still high, but people are still looking for homes. Demand has not dropped sharply. Instead, buyers, sellers, and investors are changing how they do things. They are using new ways and taking advantage of market conditions as they get a bit better. If you plan to buy or sell a home, or are just watching rates, this article has information to help you decide what to do in today’s housing market.
Mortgage Rates Are High—But Buyers Haven’t Disappeared
For the past two years, mortgage rates have been a main topic in housing talks. In 2025, 30-year fixed mortgage rates have mostly been between 6.64% and 7.25%. Normally, rates this high would really slow down the market. But home sales are still strong. This shows buyers aren’t stopping easily. In fact, many are just changing their plans.
One way people are changing is using adjustable-rate mortgages (ARMs). These often have lower starting rates than regular fixed-rate mortgages. They make it easier to afford payments for the first few years. Buyers are also asking sellers for help, especially with interest rate buy-downs. Buy-downs give a lower rate for the first few years. This makes payments more affordable now, and people hope to refinance later.
Also, in the Las Vegas real estate market specifically, things have been strong for homes priced under $500,000. People are looking at these homes often, and they are selling quickly. This is especially true for first-time buyers and people moving from states where homes cost more, like California. Make no mistake: while high mortgage rates make it harder for some to afford a home, many people are still looking to buy.
Housing Demand Holds Up with a Surprising Year-Over-Year Bump
Many people thought high costs would lower demand. But national numbers show the opposite. HousingWire says that people applying for mortgages to buy a home went up 13% from last year. This increase is important. It happened even though mortgage rates didn’t drop much. Instead, it shows buyers are feeling more confident again. This is true even with higher borrowing costs.
None of this makes 2025 a super strong seller’s market. But it is a lot better than 2024. Lots of experts thought last year was the worst point. That was because rates were very high and the economy was uncertain after the pandemic. Since last year was tough, even small improvements feel like a big deal.
You can see this national trend’s effects clearly in Las Vegas. People are still looking for homes consistently in areas known for good schools, planned building projects, or potential for growth over time. Master-planned communities with parks, stores, and easy ways to get around, like Summerlin and Skye Canyon, get lots of interest. Location is more important to buyers than ever. And homes near places you can walk to, with features like parks or pools, or close to jobs still get many offers even with high rates.
Pending Sales Are Climbing Too
Besides applications, we can look at pending sales. These are homes that have a buyer contract but haven’t closed yet. They are another key sign of how the market is doing. According to Altos Research, that 391,488 homes were pending sale across the country last week.
That’s more than the 384,614 pending sales in the same week last year. This is another sign that activity is picking up. This uptick in pending sales could mean the market is settling down. This goes against predictions of a big housing crash. When people keep signing contracts to buy homes, it means they feel good about their money. It also suggests they think home values will stay up.
In Las Vegas, more homes are going pending at different prices. This includes smaller condos and larger single-family homes. What stands out is that more people are buying with cash, especially investors. Many are from California and states like Oregon and Washington. Zip codes such as 89138 (Summerlin North) or 89052 (Henderson’s Green Valley) are drawing long-term investors. These investors see good value there now compared to markets that got too hot, like Austin or Phoenix.
Rate Watch: The 10-Year Yield Offers Some Relief
Most experts watch the yield on the 10-year U.S. Treasury bond. This is a main sign for where mortgage rates are headed. Usually, mortgage rates are about 1.5 to 2.0 percentage points higher than the 10-year Treasury yield. Lately, that yield has stayed around 4.35%.
This isn’t low compared to before the pandemic. But it’s good because it’s stable. It helps stop mortgage rates from jumping up more. Every small dip in the rate helps with how much people can afford. If your rate drops by even a little bit, like 0.125% or 0.25%, you could save a lot each month. For example, someone buying a $450,000 home with 10% down could save $100 to $200 a month if the rate drops by 0.25%. Over 30 years, that adds up to tens of thousands saved on interest.
Smart buyers in Las Vegas are using these small rate dips. They are locking in rates before they might change a lot again. Others are talking with lenders often. They are trying to get better terms even when the bond market improves just a little. This shows how watching rates closely can really help you save money.
Mortgage Spreads Still a Drag on Lower Rates
The 10-year yield isn’t going up. But mortgage rates aren’t falling much. This is because of something people often miss: the difference between what investors earn and what borrowers pay. This is called the mortgage-backed securities (MBS) spread. The spread is the gap. It’s the money investors make when they buy groups of loans (from groups like Fannie Mae or Freddie Mac). And it’s the money borrowers pay on those loans.
Right now, this gap is wider than it usually is. Usually, if the gap was like it was before the pandemic, mortgage rates would likely be around 5.75% to 6.00%. But today, they are often 7% or more. This wide gap is holding rates up. So, buyers are looking for other ways instead of just waiting for rates to fall.
More people are using things like seller-paid rate buy-downs. Also temporary 2-1 buydowns (where rates are lower for the first two years). And hybrid ARMs are also popular again. In Las Vegas, builders selling new homes are working hard to offer rate deals. They do this to keep selling homes. Some are even paying to get rates down into the 5% range to get buyers who aren’t sure yet.
Inventory Is Finally Growing—A Healthy Sign for Buyers
Since 2020, having few homes for sale has been a big issue. Maybe it was because of the pandemic. Or maybe people were careful about money. Or maybe homeowners didn’t want to lose their super low mortgage rates. Sellers had mostly not listed their homes. But now they are. HousingWire reports that across the country, the number of homes for sale went from 702,434 to 719,400 in one week in 2025.
That might not seem like a lot. But it’s an important change. It shows things are shifting. More homes for sale means buyers have more choices. It means less pressure for buyers to pay more than the asking price. And it means the market is slowly getting back to normal.
Las Vegas is seeing the same trend. This is especially true in new housing areas and suburbs that are growing fast. Places like Cadence in Henderson, Inspirada in the southwest, and Skye Canyon in the northwest have lots of new homes from builders. These areas now offer more choices. You can find townhomes under $400,000. Or you can find bigger single-family homes in the $500,000s. This gives buyers with different budgets more homes to pick from. It also means sellers in these areas have more competition.
New Listings Are Catching Up—Sellers Are Coming Off the Sidelines
HousingWire says that in just one week in 2025, 77,004 homes were listed for sale across the country. That is much higher than the 59,269 homes listed the same week in 2023. More sellers coming into the market helps fix the low inventory problem. It also shows people feel more confident about selling.
Many homeowners see that even if they give up their very low mortgage rate, they can still make money by selling. In Las Vegas, part of this change is Baby Boomers selling larger homes. They are taking advantage of the money their homes have gained. Also, some landlords are selling after years of higher repair costs or new rules. Some of these sellers really need to sell. Others are looking to see what they can get to buy a different home in the city.
If you plan to sell soon, now might be a good time. There are more buyers looking. And there isn’t a ton of competition yet in certain price ranges. But know this: if you wait until late summer or fall, there might be many more homes for sale. This is when the number of listings usually peaks.
Price Cuts Are Increasing—But It’s Not a Red Flag
About 35.5% of homes across the country have lowered their prices lately. That’s up from about 30% this time last year. Some people think this means the housing market is going down. But the full picture is more complex. Price cuts often happen when there are more homes for sale and buyers are being more careful. It doesn’t always mean home values are dropping a lot.
In high-end markets or cities that grew very fast during the pandemic, prices are just coming down from being listed too high before. In Las Vegas, we see price cuts especially where prices went up too fast in 2021 and 2022. Places with high HOA fees, bigger yards, or custom homes are more likely to see price cuts. This is because fewer buyers are looking for those specific things.
These lower prices are chances for buyers. Buyers who are ready with loan pre-approvals and can be flexible about moving can find good deals from sellers who want to sell quickly. This is especially true for homes in the middle to higher price ranges.
Home Prices Are Rising Slowly—But Inflation Eats the Gains
HousingWire thinks national home prices will go up a little, about 1.77%, in 2025. This is a small increase. But it’s less than how much prices for other things are going up. Inflation is around 3% a year. What this means is that after thinking about inflation, home values aren’t really growing much.
This is a good situation for buyers who plan ahead. Some people are waiting, hoping for prices to drop a lot. But that might not happen. Right now, prices are okay, there are more homes to choose from, and you might be able to get a lower rate later.
In Las Vegas, this situation is a bit more complex. Homes for first-time buyers or in the middle price range (between $300,000 and $550,000) are keeping their value steady. Prices aren’t going up much, but they aren’t falling. But high-end homes have gotten a little softer in price. This is a chance to get some high-end homes for less than they were at their highest price.
Don’t Let Headlines Drown Out Real Market Signals
It’s easy to get worried when you see headlines about rates going up, housing bubbles, or politics. But what’s happening in your local area might not be like the bad news you hear nationally. Looking at pending sales, how many homes are for sale, and how many buyers are out there gives a clearer picture.
Steve’s tip: focus on what’s happening where you live, like in your neighborhood and school district. In Las Vegas, areas like Summerlin and Southern Highlands still get lots of interest no matter what’s being said about the economy. Other buyers looking for homes, not online headlines, decide how sales turn out.
Should You Buy or Sell in Las Vegas Right Now?
Sellers: If your home is priced under $600,000, it will likely sell quickly and for a good price. This is especially true if it’s near top schools. More homes are coming on the market, so now is a good time to list before there is more competition later this year.
Buyers: Waiting for rates to drop a lot might not be the best idea. Even small drops could mean you face bidding wars, especially for homes priced for first-time buyers. It might be better to try and make a deal now when sellers are more open and you have more homes to pick from.
Investors: Las Vegas still looks better than many other cities for value. Rental income compared to home cost is good. And forecasts say more people will move here through 2030. Demand for rentals is especially strong. This is because the tech and hotel industries are growing.
What’s Next for Las Vegas Real Estate?
Thinking about a plan, the Las Vegas housing market has a good mix. More homes are for sale, but not too many. Buyers feel more confident or about the same. And prices are starting to look more normal. If mortgage rates stop changing much or drop a little, expect more activity. This will likely come from people who have been waiting.
Look at neighborhoods where money is being spent on roads and services. Or ones with new parks and shops. Or ones close to jobs. For example, think about master-planned areas like Summerlin. Or Inspirada in Henderson. The North Las Vegas area is also getting popular with first-time buyers and investors.
Final Thoughts From Steve Hawks
Markets go up and down. But smart buyers, sellers, and investors focus on what’s happening locally. The numbers for 2025 point to being hopeful, but careful. Mortgage rates are high, but people are finding ways to deal with them. More homes are for sale, but there aren’t too many. And buyers are still actively looking.
Like always, when you do something isn’t the only thing that matters. Having a plan is key. Think about rate buy-downs. Also, look at other ways to finance things. And study the market to match your specific goals. And when chances to act come up, do it with confidence.
Ready to buy or sell in Las Vegas? Contact me for a personal look at the market or to see a home today.
Citations
- Altos Research. (2025). Weekly pending home sales data. Retrieved from https://www.altosresearch.com