Mortgages are at an All-time Low, Keeping the South Florida Real Estate Market Strong
Do you keep hearing that mortgages are at an all-time low? That is because the 30-year mortgage rate is now the lowest in the past 50 years. According to Freddie Mac, the 30-year fixed-rate mortgage fell to 2.88% this week and the 15-year fixed-rate dropped to 2.44%.
This has created an increase in buyer demand by giving them more purchasing power. Broward and Miami-Dade real estate market saw a 82% to 100.8% growth in year-over-year for condominium and single-family home sales, according to the Douglas Elliman July 2020 report.
“We personally have seen a slight uptick in demand, with serious buyers being more aggressive in finding a new home. With inventory low, there seems to be a competitive environment amongst buyers and an urgency to close before rates change,” says Lauren Albrecht, broker owner a of Elite Sales Group Real Estate.
Despite the low rates, the number of new home purchases is lower due to the lack of inventory. Expect homes that are on the market to receive multiple bids, price escalation clauses, and property inspection waivers for a while.
If you are in the market for a new home to take advantage of these low rates or are interested in selling your home, contact us so we can help you navigate the real estate market during these unprecedented times.