We have just experienced the largest three-week drop in mortgage rates in 14 years. The rate reduction appears to be signaling that the Federal Reserve will slow its pace of short-term interest rate hikes. That said, the reduction in rates has not yet increased the number of mortgage applications. Rather, they continue to decline.
Unfortunately, the broader economy is still weak, and may even be getting weaker. While that is keeping some prospective buyers and sellers on the sidelines, it should also weaken inflation. In turn, that should point to a less aggressive Federal Reserve.
With 2023 right around the corner, we are not yet sure what the year will bring for real estate in our area. That said, we know that Florida will continue to show an influx of people from across the planet. There will be active buyers and sellers in our market; however, it is still too early to tell how that market will look.