With home prices in Florida still generally on an upward trend, navigating the real estate market has become challenging for both buyers and sellers due to mortgage rates. Currently hovering around 7%, some buyers have opted to put their home search on hold, hoping for a decline in either market interest rates or home prices, or even both. However, is this the most effective strategy?
The infographic below lists advice from Florida Realtors regarding lesser-known financing options.
Over the past month, mortgage interest rates have decreased, which is good news for new borrowers. For every $100,000 borrowed, the recent drop in rates will save them approximately $21 per month. As of this week, the average interest rate for 30-year fixed-rate mortgages in the United States was 6.27%. This marks a notable improvement from the 6.6% rate observed last month.
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.
Mortgage interest rates have risen sharply over the last 30 days. The recent change will cost new borrowers over $56 per month for every $100,000 borrowed. Average U.S. interest rates for 30-year fixed rate mortgages were at 6.02% as of this week. Last month at this time, they were sitting at 5.13%.