Interest rates continue to dominate the headlines as federal reserve raised the rates again this past week by 0.25% percent to their highest level in more than 22 years (5.25%-5.5%.). One interesting note during the meeting is the Federal reserve chairman told reporters in Washington on July 26 that he doesn’t see inflation slowing to 2% until around 2025.
Despite the high interest rate environment, the US economy continues to show resilience and economic growth accelerates defying slowdown expectations. The economy grew 2.4% in last quarter surprising economists which were expecting only 2% growth. Buyers are slowly entering the market again since early summer adjusting to new interest rate environment and lenders are also finding ways to creatively find alternate ways to originate loans.
Sellers can help offer as well incentives especially builders who typically offer closing costs contribution. Buyers, Sellers and mortgage lenders are working together to help bring the deal to closing table adjusting to higher interest rates. Its a win-win for all parties.
Also, I have noticed that more and more Buyers seeking new homes due to the limited inventory in the market and home builders have been increasing production of homes.
Florida grew by an annual rate of 3.5% — a sizable difference when talking about hundreds of billions of dollars of activity. And Florida’s growth was the fastest among the biggest states like California, New York and Texas. The traditional economic drivers — real estate and retail — are fueling the growth.
People and businesses moving to the state , which drives demand for real estate and retail spending. State sales tax revenue in May was up almost 6 % compared to a year earlier.
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