Tampa Bay Home Buyers Rejoice: Mortgage Rates Hit 4-Month Low

Great news for Tampa Bay home buyers! We're right in the middle of the prime home buying season, and mortgage rates have dropped to their lowest point since March. This could be the perfect time to find your dream home in Tampa Bay.

 

As of the week ending July 18, the 30-year fixed-rate mortgage averaged 6.67%, down from 6.77% the previous week. This 0.1% decrease might seem small, but it can make a significant difference in your monthly mortgage payments. For example, on a $400,000 loan, this reduction could save you about $72 per month. The 15-year fixed-rate mortgage and the 5/1 adjustable-rate mortgage (ARM) have also seen similar decreases, making now an attractive time to secure a loan.

 

The drop in mortgage rates is closely linked to the recent decline in inflation. Inflation has been a major concern over the past few years, driving up prices on everything from groceries to gas. However, in June, the consumer price index dipped below 3% for the first time since March 2021. This cooling inflation has contributed to the decrease in mortgage rates, making home loans more affordable.

 

For those looking to buy a home in Tampa Bay, the timing couldn't be better. The period from May through August is typically the busiest time for home sales, and with the current drop in mortgage rates, more buyers might be motivated to make offers. However, finding a suitable home at an affordable price remains a challenge. Although the inventory of homes for sale has been growing, it still hasn't returned to pre-pandemic levels, meaning there are fewer choices for buyers.

 

The decline in mortgage rates has also sparked a surge in refinancing. According to the Mortgage Bankers Association, refinance applications jumped 15% in the week ending July 12. This trend is particularly noticeable among FHA and VA loans, which tend to have higher interest rates. For homeowners who secured their mortgages last fall when rates were above 7.5%, refinancing now could lead to significant savings. For example, on a $400,000 loan, refinancing at the current average rate of 6.67% could lower your monthly payment by $224 compared to a loan with a 7.5% rate.

 

• Monitor Mortgage Rates: Keep an eye on the latest mortgage rate trends to ensure you lock in the best rate.

• Get Pre-Approved: Before you start house hunting, get pre-approved for a mortgage to streamline the buying process.

• Consult Local Experts: Work with a local real estate agent and financial advisor who understand the Tampa Bay market and can guide you through the buying process.

• Consider Refinancing: If you already own a home and secured your mortgage when rates were higher, now might be a good time to refinance and save on monthly payments.

With mortgage rates hitting a four-month low, Tampa Bay home buyers have a unique opportunity to secure affordable home loans. Whether you're looking to buy your first home or refinance an existing mortgage, the current rate environment is favorable. Act now to take advantage of these lower rates and make your home ownership dreams a reality.

 

For more detailed information, you can read the full article on NerdWallet here.