Beat High Interest Rates with Highland Homes

Posted: May 15, 2024 | Categories: Communities | News | Home Buying 101
By Highland Homes

Updated on May 15, 2024: This story was originally published on November 14,2023, and has been updated with new information.

After more than ten years of historically low interest rates, mortgage rates began to rise in 2022 as inflation reached its highest level in decades and the Federal Reserve (Fed) made multiple increases to the federal funds rate, making debts more expensive in an effort to lower inflation or in other words, slow down the rise in prices of consumer goods.

If you are shopping for a home, this may leave you asking three important questions:

1. When are interest rates going to go down?

2. Should I buy now or wait?

3. What can I do to get the best deal when buying a new home in Florida?

Fret not, my friends – we are here to help answer these important questions!

1. When are interest rates going to go down?

What will interest rates be in the future?

Mortgage rates peaked in October of 2023, then went down through the end of the year, before gently increasing again through early 2024. This was based not fully on the federal funds rate, which has remained the same since August of 2023 - mortgage rates more closely follow the 10-year treasury yield, which is affected by the federal funds rate and other economic factors.

In reality, mortgage rates slightly fluctuate all the time. A rate you are quoted today could be slightly lower, or higher, tomorrow. I think the spirit of the question here is when are interest rates going to see a significant drop - And the answer is, experts do not expect this anytime soon. Mortgage rates strongly depends on the economy, slowing down inflation, and future decisions by the Federal Reserve - and comments after their most recent meeting indicate that for now, they are holding the federal funds rate steady.

What we can tell you is that in our more than 25 years as a Florida home builder, we’ve ridden the wave of up and down interest rates while continuing to help Florida home buyers achieve their new home dreams.

When rates go down, experts expect that to happen slowly versus a large decrease at one time. This brings us to #2…

2. Should I buy now or wait?

Couple with house and calculator deciding if it's time to buy

Florida continues to be a top destination for inbound movers, so you can expect Florida home prices will continue to increase. With the uncertainty surrounding mortgage interest rates and whether they will go up or down, and by how much, it’s a gamble and probably isn’t worth waiting (and potentially paying a higher price) if you are financially ready to buy a house now.

After all, buying your first home or moving into your next home is about fulfilling your needs and dreams – not what the Fed is doing.

3. What can I do to get the best deal when buying a new home in Florida?

Incentives from Highland Homes help you accomplish your new home dream

Beat high interest rates with Highland Homes! Not only will we buy down your interest rate plus pay all of your closing costs, but our Lender Partner is currently offering an amazing ‘buy now, refinance later’ offer so when rates do drop, you can take advantage of that – for free!

It’s as easy as 1-2-3:

1. Find your dream home by Highland Homes, with beautiful homes available now in desirable Florida communities.

2. Finance your new home purchase with Home Solution Lenders, Inc., a full-service mortgage lender and Highland Homes Lender Partner offering great financing options and customer service from a locally-based team.

3. If rates drop, refinance for FREE! This rate protection program offered by Home Solutions Lenders, Inc. means you can buy your dream home now, and if rates drop in the next 6 to 24 months, Home Solutions Lenders will help you refinance your mortgage and provide you a lender credit for the closing costs including underwriting fees, title fees, and doc stamps.

The Bottom Line

A new home in Florida by Highland Homes

This is still a good time to buy a home, and working with a trusted New Homes Specialist and Mortgage Lender will help you take advantage of the best possible rates and opportunities to own the new home of your dreams – today!

Highland Homes builds new homes designed for your life in top Florida cities and works with Lender Partners committed to providing you with the best financing options and highest level of service. To find your dream home in Florida, call or email our New Home Specialists today!

Programs available as of May 15, 2024. For informational purposes only and not a guarantee to lend. Program restrictions apply. Acceptable income, assets, credit, and property value are required. Must close on a loan with Home Solution Lenders, Inc. to be eligible for no closing cost refinance. Must refinance in the next 6-24 months from the date of closing. When refinancing, Home Solution Lenders, Inc. will contribute a lender credit up to the total amount of closing costs. Credit may not exceed the actual closing cost amount. Excludes prepaids, prorations, discount points, HOA, CDD, and mortgage insurance premiums collected at closing. Offer is not transferable, not exchangeable, and has no cash value. Offer must be presented at refinance application to be valid. Not available for Purchases, Construction to Perm, and/or DPA loans.

Tags: Home buying 101 Interest rates Mortgage Highland Homes Lender Partner Real estate market