REAL ESTATE NEWS:

2025 Legislative Session Ends

Florida lawmakers closed the 2025 legislative session late Monday, ending an extended lawmaking period focused on key budget and policy issues. The outcome included a series of legislative wins for Realtors®, property owners and communities, from eliminating the business rent tax to allocating millions for home and condo hardening efforts. These incluse:

• $50 million for the Hometown Heroes Housing Program
• $310 million in new and unused funds to help Floridians harden their homes and condominiums
• Bringing additional transparency to transactions involving condominium units
• Protecting the private property rights of commercial building and short-term rental owners dealing with squatters
• Eliminating the negative consequences of lookback periods
• Increasing the transparency of flood risks for long-term renters, as well as purchasers of condominiums, cooperatives and mobile home park lots

Housing starts fell 9.8% in May, driven by a sharp drop in multifamily construction 

A sharp decline in multifamily production pushed overall housing starts down in May while single-family output was essentially flat due to economic and tariff uncertainty along with elevated interest rates

single-family starts are down 7.3% compared to May 2024. The multifamily sector, which includes apartment buildings and condos, decreased 29.7% 

Single-family permits and construction starts are down on a year-to-date basis for 2025 for what has been a disappointing spring housing market, given ongoing elevated mortgage interest rates, challenging housing affordability conditions led by higher construction costs, and macroeconomic uncertainty,” said NAHB Chief Economist Robert Dietz. 

Mortgage Rates see third week decline but still not enough

Mortgage rates remain near 7%, frustrating some buyers who expected lower costs. Experts say waiting for a big drop may not pay off, as small declines are likely. Rates on 30-year mortgages fell to 6.81% from 6.84% last week, A year ago, the rate averaged 6.87%. While 15-year mortgage rates eased to 5.96% from 5.97%. A year ago, it was 6.13% 

Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. The key barometer is the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The 10-year Treasury yield was at 4.35% at midday Wednesday, down from 4.58% just a few weeks ago.

The average rate on a 30-year mortgage has remained relatively close to its high so far this year of just above 7%, set in mid-January. The 30-year rate’s low point this year was in early April when it briefly dipped to 6.62%. 

What’s up with mortgage rates?

When mortgage rates rise they can add hundreds of dollars a month in costs for borrowers. The housing market has been in a sales slump since 2022 as elevated mortgage rates discouraged many would-be homebuyers.

Weren’t mortgage rates supposed to be lower by now? The Federal Reserve slashed the federal funds rate three times at the end of 2024, which raised expectations that the cost of borrowing would drop, too.

Instead, 30-year mortgage rates did what no one wanted them to do: They went up. Today, they’re still hovering close to the 7% mark, which is significantly higher than most prospective buyers are willing to pay: In fact, nearly a third of non-homeowners (31%) said they would need a mortgage rate of less than 5% to feel comfortable buying a home

There still may be some slight relief in the future. Fannie Mae forecasts 30-year mortgage rates will close this year at 6.83% and will end 2026 at 6.03% 

Is it wise to try to time the market?

Even a small rate drop can make a difference in how much house you can afford. So, if you’ve been holding off on a home purchase, should you hang tight and keep a laser focus on watching rate movements? Not a great idea,

There’s no guarantee that rates are going to be that much less in three or six months. Buying now decisions? There isn’t much value in waiting. You could be building up equity in your home. The longer you wait the longer it will take to earn. There’s less competition, if you buy now and are less likely to have bidding wars or multiple offers. 

Bottom line

While some housing market experts believe that mortgage rates may tick down toward the end of the year, it’s no sure bet. Whether you’re a first-time homebuyer or a seller who wants to move but has been scared off by higher rates, get used to the current 6.55% to 7% range. “Shop around for the best mortgage that you can get and do the deal,” Ostrowski says. “If mortgage rates really do plunge, you can always refinance later.”

This is the third decline in the average rate after rising two weeks in a row. The average rate has been mostly trending lower since mid-January, when it climbed to just over 7% — a welcome trend for aspiring homebuyers struggling to afford a home after years of soaring home prices.