Mortgage Rates Just Dropped—Here’s What It Means for Tampa Buyers

By Andrew Duncan

Andrew Duncan is the Founder, CEO and Co-Owner of Tampa’s Best Real Estate Agent Team, The Duncan Duo, the Host of The Duncan Duo Real Estate Show Sundays at 10am on 970AM WFLA. As the team’s Founder, CEO & Co-Owner, Andrew’s focus is on the growth of the company, marketing and promotion initiatives as well as motivating and coaching the team’s agents and leadership.

Should you gamble on lower mortgage rates later, or lock in today’s opportunities? That’s the choice many homebuyers and homeowners are weighing right now.

Mortgage rates have dropped to their lowest average in nearly a year, sparking questions about whether it’s better to hold out for further savings after expected Federal Reserve cuts or make a move in today’s market.

Rates are holding in the 6% range. Currently, buyers are seeing rates in the low-to-mid 6% range, while government-backed options like VA and FHA loans are dipping into the high 5%. What makes this noteworthy is that these rates don’t require temporary buydowns, something the market hasn’t seen in quite some time.

The Fed’s impact is already priced in. The assumption many people make is that once the Fed lowers rates, mortgage rates will fall significantly more. But that’s not how the market works. Because most home loans today won’t close until after the anticipated Fed moves, the mortgage market tends to price in those expectations ahead of time.

“Mortgage rates are at their lowest in a year.”

For example, if three Fed cuts totaling 0.75% are projected this year, about half or even a little more of that drop is already reflected in current mortgage rates. That means it’s unlikely rates will drop another three-quarters of a point just because of Fed action.

Broader conditions could push rates lower, but relying solely on the Fed isn’t realistic. Mortgage rates are forward-looking. By the time you get pre-qualified, find a home, go under contract, close on the loan, and make your first payment, the market has already adjusted for expected changes.

Now is the time to explore your options. Rates are already more favorable than they’ve been in months, and waiting for the “perfect” drop may not pay off.

If you’re considering buying or refinancing, now is the time to see what you qualify for. Visit citywidetampa.com to connect with Melissa Rodriguez, complete an application, and review your options based on your credit profile. You can also reach out at (813) 359-8990 or info@theduncanduo.com. I’m here to help you explore your options and make the process as easy as possible.