Mortgage rates have dropped sharply, sparking the strongest surge in borrower activity since 2022. According to the Mortgage Bankers Association, loan applications jumped 9.2% during the first week of September. Refinance applications climbed by 12%, and purchase demand rose 7% as buyers moved quickly to lock in more favorable terms. Fortunately, the average 30-year fixed mortgage fell to 6.29%, which is a level we have not seen in over a year. This dip has opened the door for many who had previously put their home search or refinance plans on hold.

In the Las Vegas Valley, this shift is already affecting market momentum. Housing inventory has grown by over 30% compared to last year, giving buyers more options and reducing the pressure of bidding wars that defined previous years. The median home price remains steady around $450,000, but with more listings and fewer buyers competing aggressively, those entering the market now often find themselves in a stronger negotiating position. Real estate agents across the Valley are reporting increased foot traffic at open houses, and many believe that if rates hold or fall further, the market could regain much of the energy it lost over the past year.

Lower rates are also reshaping monthly affordability. A home that seemed out of budget just months ago may now fall within reach, thanks to reduced borrowing costs. This shift has encouraged not only first-time buyers but also move-up buyers who had been hesitant to sell and trade into a larger mortgage. Some are using this opportunity to upsize or relocate within the Valley while locking in more affordable payments. Mortgage pre-approvals and rate locks have seen a noticeable uptick, especially among well-qualified buyers who are eager to capitalize before any future rate volatility.

Current homeowners are also rushing to refinance. Many who previously secured loans at 7% or higher are now seeing the potential to save hundreds of dollars per month by locking in these lower rates. Adjustable-rate mortgages have regained popularity, particularly among buyers planning short-term ownership or expecting continued rate drops in the coming years.

For those thinking about making a move, now is the time to act. Rates can shift quickly, and competition may increase as more buyers re-enter the market. Working with an experienced and trusted local Real Estate Team like The Dulcie Crawford Group can give buyers the guidance, insight, and edge they need to navigate today’s evolving market.

The Team leader, Dulcie Crawford, is a native Nevadan, born and raised in Las Vegas & Graduate of UNLV. Dulcie is a Community Expert & stays current with updates on market trends & market conditions.  A senior Realtor with Signature Real Estate Group, she has sold over 1,300 homes since 1998. You are assured an exceptional experience when buying or selling Real Estate with The Dulcie Crawford Group.