Florida Mortgage Rates Forecast | May 2024

Will Florida Mortgage Rates Go Down In May?

Florida mortgage rates in May 2024 are predicted to remain around current levels or see a slight decrease. Economic data, particularly inflation reports, will influence how much rates move, and the Federal Reserve's actions may also play a role.

Looking ahead to May, most experts think that mortgage rates in Florida won't go down much. They believe the rates will stay around the higher 6% range.

This is because the Federal Reserve is being very careful about lowering rates due to ongoing high inflation, which affects prices for things we buy.

Any changes in mortgage rates next month will likely depend on new information about inflation and jobs. If these reports show inflation is still high or more people are getting jobs, mortgage rates might stay the same or increase slightly.

Generally, we shouldn't expect big drops in mortgage rates any time soon.

Chart represents U.S. weekly average mortgage rates for 2021-24 as of April 18, 2024.
Data Source from Freddie Mac's Primary Mortgage Market Survey®.

2024 Florida Interest Rate Forecast

Below, we forecast the likely mortgage rates for every remaining month in 2024. Experts at MakeFloridaYourHome used data from the federal mortgage agency Freddie Mac to make our projection.

Here are some key insights from analyzing this data:

Consistent Rising Trend

Starting from a low point in April 2023 with rates at 6.34%, mortgage rates have generally increased, reaching 7.62% in October 2023.

The rates for the rest of 2024 are expected to keep increasing each month, hitting 7.39% by December. This shows a steady increase over 20 months, pointing to rising costs for borrowers.

Stabilization Above 7%

After some ups and downs in early 2023, mortgage rates have stayed above 7% since August 2023 and are expected to stay above this level throughout 2024.

This suggests that the lower rates at the start of 2023 might not return soon.

Gradual Increase Predicted

The rates forecasted for 2024 show a small and steady rise each month, from about 0.03% to 0.04%.

This slow and steady climb indicates a stable economic environment. It gives people looking to buy homes a clear idea of what to expect and helps them plan their finances better.

The Best Loan Types For a High-Interest Rate Environment

In a high-interest-rate environment, selecting the right type of loan is crucial to managing costs effectively. Here are some of the best loan types to consider:

Fixed-Rate Mortgages

This type of loan locks in the interest rate for the entire term of the mortgage, which can be 15, 20, or 30 years. Opting for a fixed-rate mortgage in a high-interest rate environment can be beneficial as it protects you from future rate increases.

While the initial rate might be higher, it offers stability and predictability in your payments, and you can refinance once rates go down.

FHA Loans

The Federal Housing Administration insures these loans and often offers lower rates than conventional loans. They also require a lower down payment and are more accessible to borrowers with lower credit scores.

In a high-interest-rate environment, an FHA loan can make homeownership more attainable.

VA Loans

VA loans are an excellent option if you are a veteran or active military member. Backed by the Department of Veterans Affairs, they offer competitive rates and do not require a down payment or private mortgage insurance (PMI).

This can significantly lower the monthly cost, even in a high-interest-rate environment.

USDA Loans

Aimed at buyers in rural areas, USDA loans offer low-interest rates and no down payment requirement, making them an attractive option for eligible borrowers in designated rural areas.

Choosing the right loan type is essential for managing your mortgage costs effectively, especially in a challenging economic climate.

Best 5 Grants for Florida Homebuyers

Florida homebuyer grants can help offset costs in a high-interest-rate environment, making it more affordable to purchase a home.

Here are the top five grants available for first-time homebuyers in Florida as of 2024, each offering significant financial assistance for down payments and closing costs.

Florida Hometown Heroes Program

• Provides up to $35,000 for down payments and closing costs.

• Specifically designed for professionals serving their local communities.

• No monthly mortgage insurance is required for FHA loans.

Miami-Dade Advocacy Trust Grant

• Offers up to $28,500 as a forgivable loan after 20 years.

• Requires applicants to contribute their funds.

• Must secure a mortgage through an approved lender in Miami-Dade County.

Hallandale Beach Community Grant

• Assists with up to $100,000 for down payment and closing costs.

• Offered as a no-interest loan, forgivable after ten years if the property remains the primary residence.

• Available exclusively to residents of Hallandale Beach.

Own a Home Opportunity Grant Program

• Extends up to 5% of the total loan amount for use towards down payment or closing costs.

• Requires a minimum credit score of 640.

• Available across multiple Florida counties.

Dare to Own the Dream

• Provides up to $40,000 in Tampa for down payment and closing costs.

• Delivered as a deferred-payment loan, completely forgiven after 10 years.

• Aimed to support homebuyers in Tampa.

Florida Mortgage Rate Forecast FAQ

Here's a guide to frequently asked questions about mortgage rates, specifically tailored for Florida residents looking to understand the local market trends:

What are the current average mortgage rates in Florida?

As of mid-April 2024, the average rate for a 30-year fixed-rate mortgage in Florida is 7.1%, while the 15-year fixed-rate average is 6.39%.

Will mortgage rates in Florida decrease in May 2024?

While mortgage rates have been volatile, the current economic indicators and expert predictions suggest that rates in Florida are likely to remain stable or experience only minor fluctuations in May 2024.

Are mortgage rates expected to rise throughout 2024 in Florida?

Given the current trends and economic factors, such as ongoing inflation and a strong job market, mortgage rates in Florida may continue to see upward pressure through 2024 unless significant economic shifts occur.

What factors are driving the current mortgage rates in Florida?

Several factors influence current mortgage rates in Florida, including Federal Reserve policies, inflation levels, and overall economic conditions, such as the job market and consumer spending.

How do mortgage rates vary by loan type in Florida?

In Florida, mortgage rates can vary significantly depending on the type of loan. For example, VA loans typically offer lower rates due to government backing, whereas jumbo loans might carry higher rates due to the increased risk associated with larger loan amounts.

What should Florida residents consider when deciding to lock in a mortgage rate?

Florida residents deciding when to lock in a mortgage rate should consider their financial situation, market trends, and personal risk tolerance. It's generally advisable to lock in a rate once you have a purchase agreement and have compared several lender offers.

Is now a good time to refinance a mortgage in Florida?

Refinancing may benefit Florida homeowners if they can secure a lower rate than their current mortgage, which could lead to significant savings on monthly payments and overall interest costs.

What is the lowest mortgage rate ever recorded in Florida?

While specific state records may vary, the lowest recorded 30-year mortgage rate nationally was 2.65%, reflecting historical lows in Florida, according to Freddie Mac.

Should Florida residents refinance if rates drop by 1%?

For Florida homeowners, refinancing for a 1% decrease in your mortgage rate can be worthwhile, as it typically results in significant monthly and long-term savings but ensures the closing costs do not outweigh the benefits.

How can Florida residents get the best mortgage rate?

To secure the best mortgage rate, Florida residents should compare offers from multiple lenders, consider various loan types based on their financial situation, and optimize their credit score and down payment to qualify for the lowest rates possible.

Get Support Finding The Lowest Rate

Finding the right mortgage in a high-interest environment can seem overwhelming, but you don't have to handle it alone.

At MakeFloridaYourHome, our local experts are dedicated to helping you get the lowest possible mortgage rates. We also guide you through the various grants available in Florida for which you might qualify.

Whether purchasing your first home or looking to make a change, we're here to help you make the best financial decisions.