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According Floridarealtors.org/ by Brad O’Connor/
“In December of 2021, the average 30 year fixed mortgage rate in the US was about 3.1%. Based on data published by Freddie Mac. And that, by the way, was the highest monthly average rate we had seen since June of 2020.
Fast forward just 12 months to December of 2022 and the U.S. housing market was facing an average 30 year fixed mortgage rate of nearly 6.4%. The impact of that kind of change can’t be overstated. Let’s consider a 30 year fixed rate loan on a $300,000 home with 20% down.
At a rate of 3.1%. The monthly principal and interest payment on that mortgage would be $1,025. But at 6.4%, that’s a 1500 dollar monthly payment, a nearly 50% increase. It should come as no surprise then that we had significantly fewer homes going under contract in December 2022 than a year ago, in December 2021. According to the latest statistics from Florida Realtors. New pending sales of single family homes were down 31 and a half percent year over year in December. One of the only silver linings here is that this was actually an improvement over the year over year declines of 41 and 37% reported for October and November, when rates were at higher average levels of about 6.9 and 6.8%, respectively. There is increasing consensus among economists that inflation has likely peaked and as a result, mortgage rates have topped out as well. Should this prove to be true, there will still be a big question looming over the housing market here in Florida and the rest of the US, which is how slowly and how much will mortgage rates recede from here? Unfortunately, there’s no easy answer to that. Interest rates are notoriously difficult to forecast. Even in normal times when the Federal Reserve is not actively shifting its monetary policy to this degree.”
HOWEVER Rent price for the same $300,000 house price in Pensacola/Panhandle area may exceed $2,000 which shows the buying expediency today with other homeownership advantages .
More info about Pensacola, FL housing market you can find bellow
or call me/Olena Johns 850.380.9539
Your Realtor for Life
