FLA. ORIGINATOR

Florida Mortgage Activity Took A Chilly Dip

New data shows that Florida’s largest metro areas slipped down the national list for home buying or refinance activity, according to a Black Knight Inc. report.

The Miami–Fort Lauderdale–Palm Beach metro area slipped from 9th to 10th in the nation between January and February. Meanwhile, the Tampa–St. Petersburg–Clearwater metro also charted down one place to 15th nationally, and the Orlando–Kissimmee–Sanford market fell out of the National Top 20, after charting 19th the month prior.

Mortgage interest rates rose in February after a brief dip, which resulted in a drop in the total number of mortgages taken out nationwide — with a slightly more pronounced decrease in Florida compared to the rest of the country as a whole — according to the latest from Black Knight.

The comparison is based on “rate lock” activity, which analysts rely on to spot trends in real estate, banking, and the overall health of the economy.

The report shows that the number of loans taken out by homebuyers and refinancers decreased overall in February as a result of rising mortgage rates. However, certain mortgage products saw a rise in demand, particularly from buyers who took out larger loans, saw a rise in demand, as certain non-conforming mortgage rates were more favorable than for those who took out traditional loans.

Fed Reserve: Housing Demand Improves Slightly

The Federal Bank of Atlanta reported that housing demand improved slightly since the previous report as mortgage rates edged lower.

In its report commonly known as the Beige Book, the Fed indicated marginal increases in buyer traffic and sales in January as mortgage rates moderated from the highs experienced in October 2022.

Though down from peak levels, year-over-year home price appreciation throughout the Sixth District was slightly stronger than the nation as a whole.

Affordability remained a significant headwind primarily for entry-level buyers. Also, a larger share of homes sold at a discount from the asking price.

New home builders continued to experience a high rate of cancellations and the majority offered incentives to attract buyers.

Condo Owners Can Get Relief For Repairs With Miami-Dade Program

Miami-Dade County condominium owners facing special assessment payments for structural repairs to their building can seek help through the county’s newly launched loan program.

The program, according to a story in the Miami Herald, allows owners earning less than the area median income — which is $95,620 for singles and $109,200 for couples — to qualify for a zero percent interest rate loan of up to $50,000 to pay for special assessments associated with repairs as a result of building recertification requirements.

At a town hall in Aventura last week, Miami-Dade Mayor Daniella Levine Cava said the collapse of Champlain Towers South in 2021 was only part of the reason for the program. “Unfortunately, it’s a tragedy that brings these things to bear and then we react and then we do something to try to prevent future tragedies,” Levine Cava said.

Condo owners would have 40 years to pay the loan back with a zero percent interest rate, the Herald said.

The loan program has been allocated $9 million. Owners whose cash assets exceed $50,000 must put down up to 10% of the loan amount. Should the owner sell the condo or it is no longer their primary residence before the loan is paid in full, the balance becomes due.

Broward County’s Sales Down Nearly 32%

Broward County Florida’s February sales decreased 31.6% year-over-year, according to the Miami Association of Realtors.

Existing condo sales decreased 32.4% year-over-year due to lack of inventory and rising mortgage rates.

Single-family home sales decreased 30.5% year-over-year and the current market has lower inventory in specific price points and higher rates.

Total pending sales rose 12.2% month-over-month, from 2,541 in January 2023 to 2,850 in February 2023. Pending sales are an indicator of future sales, but it takes up to 40 days for pending transactions to close and not all pending sales end in deals.

Broward County single-family home

-31.6

> Percentage decrease in year-over-year home sales in Broward County, FL.