Las Vegas Business Press :: News : Charting the Economy

Charting the Economy

Home Mortgage Interest Rates

January 2001 - January 2005

Despite recent rises in the Federal Funds interest rate, the average 30-year fixed mortgage interest rate decreased by 80 basis points during February 2005. The average mortgage interest rate in February was 5.63 percent, representing a continuing trend of declines since the peak rate of 6.29 percent reported in June 2004. The current interest rate is approaching the low of 5.45 percent reported nearly a year ago in March 2004.

With no indicators pointing to rising rates in the short-term, we expect rates to remain below six percent over the course of the next three months, while increases later in the year are likely. It is important to note that home sales activity in Southern Nevada has slowed in recent months despite the relatively low interest rates - pricing remains a concern for many buyers. In recent days, several new home communities have witnessed increased activity while a select few reported the formation of waiting lists, albeit short ones.

Taxable Sales

January 2001 - December 2004 (in billions)

December 2004 was the first month in Clark County history that taxable retail sales surpassed the $3 billion mark. Total retail sales in Clark County were $3.1 billion in the year's final month, representing an increase of 18.7 percent over the same month of the prior year. Sales categories with $100 million or more in activity that reported significant growth included: automotive sales (up 22.2 percent), eating and drinking places (up 20.9 percent), building materials (up 28.6 percent), wholesale trade of durable goods (up 21.3 percent), and miscellaneous retail (up 17.8 percent).

With rising property values in Southern Nevada, homeowners have increased their wealth, on paper, by nearly $20 billion over the past year. Relatively low interest rates have also allowed many to refinance and extract equity, which has contributed to rising consumer spending. We expect consumer spending growth to continue, but at more modest rates throughout the balance of 2005.

McCarran Passenger Totals

January 2001 - January 2005 (in millions)

McCarran International Airport began the year with 3.27 million arriving/departing passengers, an increase of 9.8 percent over January 2004. This was the 12th consecutive month that McCarran had over three million passengers travel through their gates. For the 12 months ending January 2005, McCarran welcomed over 41.7 million passengers.

This month, McCarran will be opening 10 more gates at the D-concourse. These additional gates provide the necessary capacity to meet current and future demand levels. McCarran will likely report continued growth in the first half of 2005, particularly in the period following the opening of Wynn Las Vegas. Watch for international arrivals and departures to continue their climb as the U.S. dollar remains relatively weak in the worldwide marketplace, spurring additional demand for more affordable holidays.

These statistics are provided by Applied Analysis, a Las Vegas-based research firm. For more information, visit www.appliedanalysis.com.

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