Welcome to the April 2022 South Florida Spring Season as we incur Rising Mortgage Rates and Continued Housing Price Increases. Wishing you and your family a Happy Easter and Happy Passover!

The Federal Reserve monetary policy changes are occurring to address the issue of inflation. The Federal Reserve met on March 15-16th of 2022 and raised the interest rate, which escalated the mortgage rate. The Committee also indicated that it will likely continue to raise interest rates in the future, based on market conditions and projects 6 more increases this year. According to Freddie Mac, ( The Federal Home Loan Association chartered by the US congress in 1970 ), the 30-year mortgage rate went from 3.11% in December 2021 to 4.16% for March 2022.

According to an article from Paul Centopani, the editor from Mortgage Reports Paul has used a quote from - Frank Nothaft, chief economist at CoreLogic -“The rise in mortgage rates since January... is expected to slow price gains in coming months.”.another quote is from Mark Fleming, chief economist at First American - “Rising mortgage rates may be a housing market headwind in 2022, but... house prices will moderate, resulting in a more balanced market”.


For home buyers this interest rate increase will affect your ability to purchase a higher priced home using a mortgage based on your income, as mortgage rates are on the rise. Here is a dose of reality, for 2022, we are actually quite low in regards to mortgage rates. Interest rates are still at near historic lows and it's still a good time to invest in a home.

In 1971, the 30-year fixed-rate mortgages hovered between 7.29% to 7.73%.
In 1981, Interest rates reached their highest point average at 16.63%.
In 1991, the interest rate midpoint was 9.25%
In 2001, 6.79% endured as the average
In 2011, 4.45% became the midpoint
In 2021, 3.8% was the standard


Home price gains and near-record-low inventory continue to keep aspiring buyers from purchasing a home. There are two loans to consider for Sellers looking to list their homes and relocate.

The first loan is a bridge loan. A bridge loan is a short term higher interest loan where sellers can take a loan out against their current home in order to make the down payment on the purchase of their new home. As most home sellers are looking for no contingency contracts from buyers, it can be difficult to first secure a contract to sell your home and then close on a new one within the same period.

The second loan (HELOC), Home Equity Loan will let a homeowner borrow the equity on their home. The interest rate is usually 2% over the prime rate, so it becomes a more affordable choice. This type of loan helps the borrower to cover the down payment on their new home.

When mortgage rates are lower, buying a home is more affordable with the exception that we are now in a time where home prices are at their highest levels. South Florida inventory levels are reflective of out-of-state buyers and international buyers. Who is buying Florida houses? Who is your competition? Individuals from the northern states are buying in Florida. Your fellow Americans are moving to Florida.  Also, now that the pandemic has somewhat simmered, global buyers are back. 

Yes, global buyers are back and buying Florida homes. Foreign buyers purchase property in Florida more than in any other state in the United States. The pandemic has prompted many buyers to the sun-belt and yes they love living in the sunshine state. Despite the economic outlook, buyers' desire for home ownership is as strong as ever.
Decide how to pay for your home, cash or a mortgage and be prepared. Please send Susan Penn your pre-approval letter or proof of funds. These documents are part of the contract. Obtain your financing before you are looking for a home. Financing ahead of time will let you know how much you can afford to purchase. Otherwise, while you are still gathering documents, another buyer makes an offer and the property is under contract.  Investigate closing costs such as the title policy. The first $100,000.00 is $575.00 and the next $100,0000 and thereafter is $500.00 per $100,000.00. If you are purchasing a property in Broward County or Miami-Dade, the buyer pays the title policy. In Palm Beach County, the seller pays for the title policy. 

Please keep in mind Susan Penn, realtor for 16 years, is here for your questions and here for your concerns. Sellers need to know how to stage their properties before their property is seen by the general population. Preparation is key to buying and selling. I have a checklist that I give to my sellers once my seller has signed the listing paperwork.. I have also added in a clause that the home will not be placed on the market unitl the photographs from a professional photographer are back in Susan Penn's possession.
Sellers need to understand the contract and learn how they can change it to fit their needs. There are tools with this real estate website that most realtors do not have. Most realtors do not have a website that their clients can enjoy and use at their leisure.I am happy to set up more searches with more cities. I treat my clients with the professionalism they deserve.