Mortgage rates for Florida homebuyers and refinancers continue to creep up in signs of a market correction. Prime rates have hovered just above 3 percent for months now, and they currently stand at around 3.5 percent.
Last month, our blog covered the need for homeowners sitting on the fence to refinance mortgages. Homeowners are still in a good spot to refinance or sell. The market can still be considered a seller’s market, but the window is slowly closing.
Why is the Window Closing on the Seller’s Market?
There have been months of discussions about the Federal Reserve raising interest rates. Now that it’s clear that inflation isn’t going away, the Fed is discussing moving up the timeline to raise rates, possibly to July 2022. The correlation between prime mortgage rates and home buying is clear: fewer people are willing to commit to paying back loans with higher interest rates.
Another important component of a seller’s market is low inventory. Demand for new homes has far outstripped supply since the beginning of the pandemic. That is starting to even out, and the looming foreclosure boom promises to accelerate this trend.
Experts aren’t sure when foreclosures will pick up. With moratoriums having been over for months, the boom is sure to happen imminently. September foreclosures were up 17 percent year-over-year in the Orlando area, for example.
Why Should an Attorney Help You Sell Your Florida Home?
Many states require buyers and/or sellers to hire an attorney before closing on a home. Florida, curiously, is not one of them. Just because you can, however, does not mean you should.
At its core, a home purchase is a legal transaction. The seller attests to a number of conditions present with the property. As such, lying on closing documents can result in countless legal and financial consequences for both parties.
Real estate brokers and title companies are important components of any real estate transaction, but the advice they are allowed to provide is limited. No one is better prepared to cure common closing issues than a Florida real estate attorney. The need for an attorney is even greater when a mortgage is involved. Remember: the mortgage lender’s attorney is not allowed to give the borrower legal advice.
Salas Law Firm Can Help Ensure Your Transaction Goes Smoothly
A home sale is one of the most complex transactions for consumers. The multi-step process involves a number of legal documents, and the possibility of one or more issues is relatively strong. Having the right legal counsel by your side is the best way to make sure you get the most out of your real estate deal, and Salas Law Firm would be honored to represent you.
For home purchases and sales, we are currently waiving the settlement fees for the closing for First Responders, Veterans, and Nurses as long as we serve as your title agent. This is only for closing and title services. Call us at (954) 315-1155 to schedule your consultation.
John Salas
