Just a real quick post about some breaking news concerning mortgage rates…

Federal Reserve announces plans to purchase Long Term Bonds to help keep mortgage rates low:

Click Here to Read the Full Story

At the same time, the Fed left a key short-term bank lending rate at a record low of between zero and 0.25 percent. Economists predict the Fed will hold the rate in that zone for the rest of this year and for most — if not all — of next year.

Fed purchases should boost Treasury prices and drive down their rates. That would ripple through and lower rates on other kinds of debt. The last time the Fed set out to influence long-term interest rates was during the 1960s.

“This is not only going to keep mortgage rates low for a long period of time,” said Greg McBride, a senior financial analyst at Bankrate.com. “The mere announcement may produce a honeymoon effect and bring mortgage rates down to even lower levels in the coming days.”

Through some various contacts across the country that know a little about Las Vegas Real Estate, I’ve been told that some of what they are seeing in their markets is what we saw in Las Vegas over two years ago with sales slowing down and foreclosures just starting to take place.

Many of these new Federal plans have been implemented to try to control what is taking place in markets far behind in the real estate correction process. Unlike other plans that would do little to help out Las Vegas Homeowners, the continuation of low mortgage rates should help the Las Vegas real estate market as more people realize just how low Las Vegas home values have fallen and want to take advantage of the favorable tax environment.

California Taxes, Illinois Taxes or Nevada Taxes? You decide…

With a spend happy Congress looking for ways to generate revenue and cash strapped states with big Government… I’ll take Nevada for the long term future.

Throw in the new Green Revolution for alternative energy being led by Senator Reid… and Southern Nevada could be in a very favorable position with the amount of infrastructure/money the new plans are going to require.

Nevada Developer and Solar Company strike new deal

The Silver State May Become the Solar State

Solar Thermal Power Company opens Plant in Las Vegas

The Real Future of Southern Nevada

Let’s get to reality… Keeping Mortgage Rates low is great… but to really get back to a healthy economy and out of a recession requires production. (And Production does not mean build a bunch of houses when the vacancy percentages are so high.) We got out of the Great Depression because of Manufacturing and the mid to late 1990′s were great because of the internet/tech revolution.

Oops…. Sorry.. got off track… Anyways… looks like low mortgage rates are going to continue. Take advantage of it where real estate values have already been decimated that have a potential future. Otherwise, it’s just an artificial fix…

Paul Francis, CRS
Las Vegas Real Estate
702.592.3058