Mortgage Rates Increase Again.
Where Will Mortgage Rates Finally Stop?
You see the headlines day after day. They’re enough to convince almost anyone that the market for homes in Florida is absolutely one that should be avoided. Most people in the United States aren’t ready to pay cash for their homes, making obtaining a mortgage an absolute necessity, but it can be terrifying to think about obtaining a mortgage. Florida rates, along with the rates across the nation, are absolutely skyrocketing. What are current mortgage rates in Florida? What do you need to know about mortgage rates if now truly is the right time for you to buy a home? This quick guide can help you sort it all out.
Getting a Mortgage – Florida Rates Expected to Decrease Slightly
If you’re in the market for a home, the good news is that mortgage rates really are inching down. At the moment, experts predict that by the end of 2023, mortgage rates could drop to an average of 6.8% nationally. Some are predicting a drop as low as 5.2% nationally. Given that mortgage rates in Florida are already approaching or below that, you’ll find some good news when you approach your lender.
Current Mortgage Rates in Florida Are Lower – Why?
Across the United States, not all mortgage rates stay with the national average. In fact, interest rates on a mortgage vary from state to state on a regular basis, and that happens for several reasons. Some of those reasons affect nearly every state. Some just affect Florida itself. Wondering why that is?
It starts with the overall cost of mortgage-backed securities, sometimes called MBS. These are bundles of mortgages that are sold on the bond market. The MBS market has the biggest effect on mortgage rates nationwide because these investments are a major source of funding for the U.S. mortgage market.
When investors buy MBS, they essentially provide cash to lenders, who then use that money to fund new mortgages. This influx of capital can lead to lower mortgage rates, as lenders have more money to lend and are therefore able to offer more competitive rates. Conversely, if MBS investments decline, lenders may have less money to lend, which can drive up mortgage rates.
On a state-by-state level, things begin to change as lenders begin to look at laws around foreclosures. These laws vary considerably because, in some states, it takes quite a bit longer to be able to foreclose on a house thanks to judicial foreclosure, and that impacts a lender’s overall costs. For example, some states, including Florida, have judicial foreclosure laws. In these situations, lenders have to work through the court system to foreclose on a mortgage, and that takes significantly longer. As a result, mortgage shoppers tend to pay a bit more for their loans.
The cost of doing business in the state can also color mortgage rates in that state. If a state has laws that make it harder to do business in the state, mortgage lenders tend to pass those costs on to consumers. Fortunately, Florida has long been considered one of the most business-friendly states in the nation, so that helps mortgage shoppers who are looking for the best rates.
What You Can Do to Keep Your Rate Low
Remember that while rates are beyond your control in most cases, they’re also personalized, and there are several things you can do to qualify for a lower rate. First, make sure your credit score is as high as possible, as this is one of the biggest factors lenders use to determine your rate. You can also consider making a larger down payment, as this can reduce the amount you need to borrow and make you less risky to lenders. Additionally, consider shopping around for the best mortgage rates and terms, as different lenders may offer different rates and fees.
Ready to Find the Perfect House? Contact Us Today
Finding the perfect house really is the first step to getting a mortgage. Florida rates will certainly impact you when you finance that perfect house, but you can’t begin to apply for a mortgage until you know what home is right for you, and that’s where we come in.
At Synergy Homes, our goal is to offer high-performance, energy-efficient homes to customers in South Florida at great prices. All of our models deliver exceptional value at a great price, and the amenities in each of our beautiful options are absolutely unbeatable.
As you begin your journey to find the home that’s right for you, Synergy Homes is the one place to turn. Contact us today to view one of our model properties or to discuss how we can build a home that’s designed specifically to meet your needs.