The Fed just raised rates to fight inflation, and mortgage rates followed into the low 7s. Here's what that means for Southeast Florida buyers and sellers.
Any time the Fed raises interest rates, homeowners across Southeast Florida start asking what it means for their home and whether it's still a good time to sell. The Fed's latest rate hike came in response to inflation that's still running high, since raising rates is how the government works to cool it down. If you've been thinking about listing, the real question is how this reaches your buyers and your sale.
The Fed moves short-term rates, not mortgages. The Fed controls short-term rates, while the 30-year mortgage rate takes its cues from long-term bonds. The two are still connected, and when those longer rates rise, mortgage rates rise with them. We think much of this hike was already priced in before it was announced.
"There's no hurdle in this market we can't work through to get the deal done."
Rates have already moved into the 7s. Over the past few weeks, we've watched mortgage rates climb into the low 7s. For most of last year, they hovered somewhere in the low to mid 6s, so buyers are feeling that jump in their monthly payments.
Southeast Florida demand is holding strong. The great thing about our market is how desirable it is to live here. People want to move here, especially during the colder months when everyone's trying to get away from the snow and the cold weather. Inventory has stayed relatively low overall, and people are still moving in.
Higher payments call for creative deals. When rates go up, affordability and mortgage payments go up for buyers too, so some deals take a little more creativity to put together. Our team is still selling between 30 and 40 homes a month. We still market every home and know how to get it in front of as many buyers as possible, because there are still buyers out there. Affordability's a bit more challenging right now, but there's no hurdle we can't work through to get the deal done.
If you're thinking about selling and want to know how these rate hikes could affect your home sale, we'd love to set up a free consultation. Call or text us at 561-220-2052, email us at info@tricoliteam.com, or visit tricoliteam.com. We look forward to walking through it with you.