The real estate market in the U.S. has been completely unpredictable since the housing market collapse a couple of years ago. Recently, south Florida home sales have spiked to a record high, causing a couple of side phenomena including flash sales and mortgage interest rate hikes. Flash sales are quickly-executed sales, pushed by investors with cash offers, and the lack of inventory in south Florida homes. Recently, fixed rate, thirty year mortgage loans jumped half a percent in a week. According to the Sun Sentinel, making the average rate 4.46%, which is the highest average rate for mortgage loans in two years. In addition, this is the quickest jump in fixed rate mortgage loans in 26 years. Still, experts theorize that this increased loan interest rate will hardly affect south Florida’s steady real estate market comeback. South Florida homes are still some of the most desired in the country, so there is still significant hope for a continued market recovery.
Information derived from the Sun Sentinel.