It is well known that the Miami real estate market is on fire, with people moving to South Florida in droves during this unprecedented time. It seems as though every conversation that I have these days ends up being a real estate discussion, and over the past couple of weeks mortgage rates have been a hot topic. You may have heard that the historically-low interest rates that we have been seeing have ticked up lately, which has caused many people to ask me whether the market is going to slow. In a word, no. I do not think that the mortgage rate increase is going to affect us because the change that we are seeing is very slight. As I am writing this blog, I am looking at today’s interest rates and a 30-year fixed is still hovering in the 2.8% - 3.4% range, depending on your APR, which remains incredibly low. While we had seen 30-year fixed mortgages for 2.4%, a bump of under half of a point is not going to prevent anyone from seeking financing, so it is not going to derail the activity that we are currently seeing.
All of the economic forecasts that I have seen have indicated that mortgage rates will stay low for the foreseeable future, particularly as the government is trying to keep the economy moving and growing in light of the Pandemic. Perhaps that will change, but it seems as though rates will remain similar in the near future, thus keeping Miami’s market hot!