The average mortgage interest rate in Orlando rose to 4.25% in June. In May the average interest rate was 3.68%. That’s a pretty large jump, especially since we haven’t seen it crack the 4% mark in about a year and a half.
So what’s that mean? Higher interest rates are just a normal reaction to heavy demand. This was bound to happen with such low inventory and ridiculously low interest rates for so long. While rising interest rates could price some people out of the market, we don’t expect it to completely derail the progress that has been made to sales prices.
Since this time last year, the Orlando homes prices have risen 22%. That huge gain will not be squashed because of rising interest rates; but we probably will not see such a large gain again this time next year. The higher interest rates will temper demand slightly and the higher prices will slowly bring more sellers to the market – thus leading to a more balanced market. If you’re a buyer in the market for a home – I know you’re hoping that’s the case!
Interested in selling a home while demand is still so high in the Orlando housing market? You may finally have equity! Find out immediately today because timing is everything!
*Interest rate information provide by Orlando Regional Realtor Association and is based on a 30 yr fixed interest rate.