Mortgage Rates in Fort Myers and Naples: What to Expect in September 2024
If you’ve been waiting for mortgage rates to drop in Fort Myers and Naples, you may finally be in luck. The average 30-year mortgage rate, which had been hovering around 7% since mid-July, has started to decline, reaching just under 6.5% by the end of August.
However, don’t expect a smooth ride ahead. While a Federal Reserve rate cut is likely at their meeting this September, which could further influence mortgage rates, the journey will be uneven. Greg McBride, CFA, Bankrate’s Chief Financial Analyst, notes, “Mortgage rates will trend lower in September, but it will be an uneven journey.” He explains that unexpected economic data, like a weak jobs report, could cause more fluctuations in mortgage rates than the anticipated Fed rate cut.
In the local markets of Fort Myers and Naples, this shift in rates could have significant implications. Lower rates make it more affordable for buyers to purchase homes, which is particularly important in these growing Florida markets where home prices have been steadily increasing. However, as mortgage rates dip, existing homeowners in the area may also be more inclined to sell, reducing the gap between new and existing mortgage rates. This could open up more listings in both Fort Myers and Naples.
Despite the expected decline, mortgage rates might not drop as much as some buyers hope. Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors all predict 30-year rates to stay between 6.4% and 6.7% by the fourth quarter of 2024.
Current Mortgage Trends in Fort Myers and Naples
As of late August, the average 30-year fixed mortgage rate in the U.S. stood at 6.48%. This dip in rates is the lowest we’ve seen since 2023. In Fort Myers and Naples, these changes are particularly relevant as the region continues to see demand for both single-family homes and condos.
The median home price nationwide hit a record $422,600 in July, and Southwest Florida has experienced similar trends, with strong demand pushing prices upward. Lower mortgage rates in this context could encourage more buyers to enter the market, but they could also lead to an increase in inventory as more homeowners consider selling.
Zillow’s Chief Economist, Skylar Olsen, points out that improving mortgage rates are likely to drive more home sales. However, the coming months bring uncertainty, especially with potential buyers waiting for further rate drops and the looming 2024 elections, which could impact market decisions.
What to Do if You’re Getting a Mortgage in Fort Myers or Naples
Boost Your Credit Score: In Southwest Florida’s competitive market, a high credit score can secure you the best mortgage rates. Aim for at least 740 to get the lowest possible rates.
Save for a Down Payment: Putting down more upfront can lower your mortgage rate. If you can manage a 20% down payment, you’ll also avoid mortgage insurance, which adds to your overall costs. If this isn’t feasible, explore local first-time homebuyer programs that may assist with down payments.
Know Your DTI Ratio: Lenders in Fort Myers and Naples will carefully examine your debt-to-income (DTI) ratio. Understanding and improving your DTI can help you secure better mortgage terms.
With mortgage rates poised for an uneven journey in September, staying informed and prepared is essential for anyone looking to buy in Fort Myers or Naples.
