Florida Home Finder Real Estate Blog

Mortgage Application Numbers Rise Again

Mortgage Applications Skyrocketing!

The Mortgage Bankers Association (MBA) has this cool thing called the Market Composite Index. It's basically a fancy way of tracking how many mortgage loan applications they're getting. And guess what? There's been a whopping 10.4 percent increase on a seasonally adjusted basis from the previous week. This is hot on the heels of a 10 percent jump at the start of the year. Even without seasonal adjustments, we're talking a 26 percent rise!

We've been saying that once rates come down the market is going to become much more competitive with buyers jumping back in the market and we're starting to see the beginning of this. Don't say we didn't warn you.

Refinancing

Refinancing is getting hotter, too. Refis are up…

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The Real Cost of Retiring or Living in Florida Today

In sunny and vibrant Florida, a surprising trend is emerging - especially among retirees: many people are choosing to relocate due to the escalating cost of living. This shift is driven by several factors that are making it increasingly challenging for retirees and working people alike to maintain their lifestyle in the Sunshine State. Here's a closer look at the seven key expenses that are influencing this trend:

Rising Housing Costs

It's pretty wild what's happening in Florida's housing market. Redfin's data shows that home values have shot up by a whopping 80% in just five years. Even with mortgage rates climbing, people are still buying – home sales went up by 5% in September 2023 compared to the year before. This boom isn't just about more…

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Should Congress Ban Hedge Funds From Buying Houses?

Last week, Democrats in Congress proposed two separate bills aimed at reshaping the housing market as a direct response to the increasing involvement of big investors, like hedge funds, in the residential real estate market. If you got outbid in the last few years by a cash buyer, there’s a good chance it was one of these large institutional hedge funds that were the buyer.

A post shared by The Mandel Team - REMAX (@mandelteamremax)

There are 2 separate bills. The Senate bill would require hedge funds to sell off all their single-family homes over the next decade and bans them from buying any…

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What is a Mortgage Interest Rate Buy Down?

Navigating Home Financing with Rate Buy Downs

In the ever-evolving landscape of South Florida real estate, understanding your financing options is crucial. A mortgage interest rate buy down, especially in a market with higher rates, can provide significant financial benefits.

How Does A Rate Buy Down Work?

This strategy involves temporarily reducing the mortgage interest rate, resulting in lower initial monthly payments. For a 3/2/1 buy down, the rate decreases by 3% in the first year, 2% in the second, and 1% in the third, before reverting to the standard rate.

Applying It to a $750,000 Home Purchase

With the current standard rate at roughly 6.9% as of early December 2023, let's see how this impacts a 30-year fixed mortgage:

- …

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What Happens If You Can't Pay Your Mortgage

Understanding mortgage payments can be overwhelming, especially if you're having trouble paying your mortgage. In the dynamic South Florida real estate market, many homeowners find themselves in this challenging situation. Understanding that while this can be a stressful experience, there are viable strategies and solutions available is important. This guide helps you deal with late mortgage payments by giving understanding advice and useful tips.

Understanding Your Mortgage and Late Payments

It's important to know your mortgage contract, especially your monthly payment and what happens if you pay late. Typically, lenders notify credit bureaus after 30 days of a missed payment, which can adversely affect your credit.

Many mortgages have a grace…

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South Florida’s housing market may be at a peak

The State of the Housing Cycle: Insights from Experts

For prospective homebuyers in South Florida, the current market dynamics present a challenging yet stable landscape. Ken H. Johnson, a noted real estate economist at Florida Atlantic University, observes that while we're possibly at the apex of the housing cycle, with sales moderating and prices leveling, this doesn't necessarily foretell a market crash. According to Johnson, the equilibrium we're seeing is characteristic of a market at its cycle's zenith. The consensus among housing economists is that a significant downturn is unlikely, primarily due to the imbalance between the limited housing inventory and the high demand in Southeast Florida.

This imbalance, where demand continuously…

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Major Opportunities For Home Buyers And Sellers Going Into 2024

These HUGE updates in the real estate market could significantly impact your home buying or selling plans. And they’re not just interesting – they're potentially game-changing!

Increased Loan Limits

Let's dive into the big news first: the increase in loan limits. The conventional loan limit has now been increased to $765,550, and the FHA loan limit has risen to $621,000.

What does that mean?

Any mortgage amount above these new loan limits is considered a Jumbo loan which usually has stricter requirements to qualify such as higher credit scores, higher down payments, and lower debt-to-income ratios.

You can now buy a home for up to $805,000 with only 5% down using a conventional loan. If you’re getting an FHA loan, you can now buy a home for…

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Mortgage Rates Drop More Than .5% In 1 Week

Just when we thought mortgage rates were on a one-way trip to the sky, they've thrown us a curveball. Last week, we were looking at a pretty steep 7.92% for the average 30-year fixed mortgage rate. Fast forward to today, and it's like we're in a whole new world – and a much better one for anyone thinking about buying or selling a home!

We saw something similar last November when rates had shot up to new highs before some unexpectedly good economic news came along and gave them a nudge back down.

Last year, it was a surprisingly low inflation report that got everyone's hopes up. But that turned out to be a bit of a tease, and rates didn't really start to come down until February 2023. Since then, it's been mostly uphill.

This week, though,…

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The Impact of 8% Mortgage Rates on South Florida's Housing Market

While the prospect of mortgage rates exceeding 8% has garnered attention, it's unlikely to bring about a seismic shift in the housing landscape.

Affordability Concerns

In today's market in South Florida, a household income of approximately $159,000 is needed to afford an average home with 8% interest rates assuming a 10% down payment. This is particularly relevant for South Florida, where the cost of living can be higher than other regions and the "average home" starts at a much higher price than many parts of the country.

The Real Solution: More Homes

The ultimate remedy for enhancing housing affordability lies in increasing the supply of homes. This is especially pertinent for Broward and Palm Beach Counties, where the demand for…

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South Florida Housing Market Update [October 2023]

Introduction

Hello, I'm Andy with the Mandel Team at REMAX. Today, I bring you the October 2023 housing market update. We'll focus on single-family homes in Boca, Parkland, and Coral Springs, where our team does the majority of our business. Let's dive in.

The Stats That Matter

We aim to give you leading indicators to show where the housing market is headed, not where it's been. Media often talks about closed sales prices, which reflect the market 30, 60, or even 90 days ago. We want you to know what's happening now.

New Listings: The Supply

• Boca: Up 6% compared to September 2022
• Parkland: 20% fewer listings
• Coral Springs: 17% fewer listings

Pending Sales: The Demand

• Boca: Up 16.4% compared to last year
• …

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