News & Tips
Florida Mortgage Rates Explained: Should You Buy Now or Wait?
The Florida housing market is a hot topic and mortgage rates are always an important part of the conversation. We’re here to help walk you through what’s happening with mortgage rates in Florida and figure out the best path forward for you.
The Latest on Florida’s Mortgage Rates
Mortgage rates aren’t skyrocketing like they were a few years ago, but they still change based on economic factors like inflation, the Federal Reserve’s policies, and overall market conditions. Your personal rate depends on things like:
Credit score
Debt-to-income ratio
Down payment amount
Florida’s housing market adds another layer. With steady population growth and high demand in areas like Miami, Orlando, and Tampa, competition for homes remains strong. While rates may not be climbing fast, home prices and demand can still impact your buying decision.
Does Waiting Really Save You Money?
It’s easy to think a small change in interest rates won’t matter, but even a fraction of a percent can make a big difference over time. Here’s an example:
Home price: $350,000
- Down payment: 20% ($70,000)
Loan amount: $280,000
At 6% APR on a 30-year fixed mortgage, your monthly principal and interest payment is about $1,678.74. But if the rate is 5.5% APR, that payment falls to roughly $1,589.74, possible savings of $88.93 per month.
Payment examples are for principal and interest only and are rounded to the nearest dollar. APR is calculated under Regulation Z and may be higher if prepaid finance charges apply; actual APR varies by borrower and is considered accurate within applicable Reg Z tolerances.
Waiting for a lower rate could help, but keep in mind that home prices could rise, and you’ll miss out on building equity earlier rather than later.
Should You Buy Now or Wait?
Deciding on the right time to buy is a personal journey. Let's explore both sides.
Reasons to Buy Now
You have a stable income and enough savings for a down payment.
Your budget can comfortably handle monthly mortgage payments.
Staying in your home for 5–7 years helps you build equity and market changes.
Every mortgage payment builds ownership, making it an investment in your future.
Reasons to Wait a Little Longer
You need more time to improve your credit score for a better interest rate.
You want to save for a larger down payment to lower your monthly payment and avoid Private Mortgage Insurance (PMI).
If your job or future location is uncertain.
Smart Tips for Florida Homebuyers
Navigating the housing market can feel overwhelming, but with the right strategies, you can approach the process with confidence. Here are some smart tips to help you on your journey to homeownership in the Sunshine State:
Explore Your Loan Options
Fixed-rate mortgages are a popular choice, but don’t overlook adjustable-rate mortgages (ARMs) and other financing options. ARMs often start with lower interest rates, which can make your monthly payments more affordable in the early years. Interest rates on an ARM can increase after the initial period, and your monthly payment may rise over time as future adjustments occur. Take the time to compare loan types and find the one that best fits your financial goals.
Check out our free mortgage comparison tool to discover the different loans available to you. You can select up to three types of loans to compare by clicking the Compare Product Below checkbox on the right side of the loan.
Take Advantage of Homebuyer Programs
Florida offers a variety of programs designed to make homeownership more accessible. From down payment assistance to grants for first-time buyers, these resources could possibly help reduce upfront costs and open the door to your dream home. The U.S. Department of Housing and Urban Development offers a list of homeownership assistance programs in different Florida counties.
Get Pre-Approved for a Mortgage
A mortgage pre-approval is a game-changer. It not only signals to sellers that you’re a serious buyer but also gives you a clear understanding of your budget. With pre-approval in hand, you can confidently focus on homes within your price range, saving time and energy.
Take the First Step Toward Your New Home
Ultimately, the decision on when to buy a home depends on your financial situation and life goals. Explore your options, prepare your finances, and talk with a trusted Space Coast Credit Union Team Member. With the right plan, you’ll be ready to make your move.
