Mortgage rates have decreased to 6.27%, the fifth consecutive week of decline.

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Declining mortgage rates will also mean significant monthly savings for South Florida homebuyers. In Miami-Dade County.

Mortgage interest rates decreased for the fifth consecutive week during April 2023 to 6.27%. Many Realtors estimate that mortgage interest rates will decline to around 5.5% by December as inflation continues to decline to 3.5% by the end of the year and with the Federal Reserve more It is likely to make only an interest rate increase of 0.25% in May. The decrease in mortgage interest rates will allow Homebuyers in South Florida can save between $50 and $240 on their monthly mortgage payment.

The decline in mortgage interest rates comes at an opportune time, as South Florida home sales accelerate from January to June before slowing in the second half of the year. During 2017 to 2019, 52% of home sales occurred in the first half of the year. Because of Florida's year-round sunny weather, sales can easily increase in the second half of the year, barring a bad hurricane season. During 2020, home sales increased in the second half of the year, making up for sales lost in March to May due to COVID-19, with a 5.4% increase that year and with sales in the second half of the year ;or representing 60% of total sales.

The decrease in mortgage interest rates will allow Homebuyers in South Florida can save between $50 and $240 per month on their monthly mortgage payment.

In Miami-Dade County, the typical mortgage payment on a single-family home as of February 2023 was $3,079 per month, based on a 10% down payment loan< /strong> and a mortgage interest rate of 6.26%. As mortgage interest rates decline toward 5.5% by the end of the year and assuming single-family home prices increase 5% in Miami-Dade County (single-family home prices increased 3.5% year-over-year through February 2023), the monthly mortgage payment falls to $2,840 by December 2023, representing a savings of $238 per month.

In Broward County, the monthly mortgage savings for December compared to February 2023 is $136 per month. This means that home prices will increase by 10% year-on-year (single-family home prices increased by 7.9% year-on-year through February 2023).

 

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