Orlando Local News

What Orlando buyers need to know as Fed boosts interest rates yet again

todayJuly 27, 2023 4

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ORLANDO, Fla. — Once again, the Federal Reserve raised its benchmark interest rate on Wednesday. The rate was raised a quarter-point, making this the 11th hike in 17 months.

What You Need To Know

  • The Federal Reserve has increased the interest rate benchmark to roughly 5.3% in an attempt to combat inflation

  • Inflation is at the lowest point in the U.S. since early 2021, though inflation still stands more than the Fed’s /2% goal rate

  • Orlando lenders say they don’t foresee interest rates backing down significantly soon

Lenders tell Spectrum News 13 the rate hike doesn’t come as a surprise to them, given recent market predictions. The increase comes as inflation has slowed in the U.S., down to 3% in June. That, however, is still larger than the government’s target goal of having an inflation rate of 2%.

But interest rates haven’t entirely dissuaded potential buyers from purchasing a new home. Data from the Orlando Regional Realtor Association shows that home inventory in Orlando is just about the same as it was a year ago, despite the fact interest rates are significantly up from where they were in the first half of 2022.

Lenders say that it’s best not to hold out on buying a house solely to wait for interest rates to decrease. They say they don’t foresee a significant rate decrease anytime in the near future.

“Supply and demand. You know people waiting for rates to come down to buy a home … Honestly, you might be kind of offsetting it with what appreciation you might miss it out on, right?” says Scott Fosgate, area manager with Atlantic Bay Mortgage Group.

Fosgate says the biggest hurdles for home buyers right now is low inventory and small options of homes from which to choose.

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