Dale Sorensen Real Estate, Inc

Mortgage Rates in Southern Florida: What to Expect

by Debbie Caldwell 08/16/2020

Photo by Jason Boyd from Pexels

The low rates in Florida have sparked a lot of activity in the real estate scene in the state. In Southern Florida, experts are encouraged by these rates because they lower the risk of a bubble forming in this popular part of the country. We'll look at what buyers, lenders, and sellers should expect both now and in the future. 

More Agreement, Less Fraud

Market analysts have noticed a stronger agreement between homeowner's income and the cost of their mortgage payments. Mortgage payments are, on average, less than a third of the owner's average income in many parts of Southern Florida. Brought on by higher wages plus low mortgage rates, it's a sign of stability that everyone is happy to see.

Sellers can count on strong offers, buyers can count on a strong job economy, and lenders can count on timely payments. It's creating a lot of optimism for Florida, even as the housing prices continue to rise. It also likely has something to do with major areas like Miami reporting less mortgage fraud. 

Future Mortgage Rates 

While there's no predicting which way the economy will turn, mortgage rates are expected to remain low for 2020 across the country. In an election year, it's not unusual to see the Fed avoid any kind of hike that would distract from the political action in the White House. But even if rates rise, they're likely to remain relatively low when compared to historical fluctuations. 

This could be both good and bad news for Southern Florida though. Low rates can encourage people to mobilize to either sell or purchase a home, but persistent rock-bottom rates can encourage people to stay in their current residence. This is because those who have recently refinanced or purchased won't want to move if there are no real financial benefits to a new mortgage. 

If you remove the financial factor, you're left with those who will move for other reasons, such as a new job or a growing family. What Southern Florida might see in this case is a stronger rental market. As the available inventory drops, rental prices may rise. But exceptionally low prices seem unlikely as of now, so owners and buyers may just want to keep it in the back of their minds until they hear otherwise.

Mortgage rates have a lot to do with not just the state's economy, but the nation's economy as well. If you're watching the rates closely, it may make sense to jump sometime this year if you're planning on making a move. 

About the Author

Debbie Caldwell

When you first meet Debbie Harris-Caldwell, you are immediately drawn to her charming Welsh accent and the twinkle in her eye. The well-traveled transplant from Wales is quick to set you at ease and time spent with her promises to be time well spent.

Debbie has been a real estate agent for 40 years and takes great pride in her customer service skills. "I make myself available to my customers when they need me, whether it's on a Sunday Evening or after their long day at work. I make my schedule fit theirs. I also keep my customers updated on everything happening with their listings or purchase, I am their conduit for information." She has built a business following her key principles of clear communication, attention to detail, client advocacy, and comprehensive knowledge of the area. Debbie comes to every new transaction with positive energy, determination, a strong understanding of the currents driving the market, and the expertise that comes from a lifetime of experience. She knows the importance of marketing and whether a home is for sale for $200,000 or for $2 million, she always has professional photography done and creates a listing presentation that best shows off her customer's home.