Why this week's Federal Reserve interest rate decision matters to South Florida's housing market?
South Florida’s housing market may see a lot more cash buyers than other regions, but it remains sensitive to mortgage rate changes. The market has stabilized as borrowing rates have been dropping since the spring.
It means the regional real estate market has plenty at stake with this week’s meeting of the Federal Reserve’s Open Market Committee, the group which decides the Fed’s short-term interest rate and influences all kinds of borrowing rates.
The interest rate cut of one-quarter percent would be the central bank’s third rate cut this year. The Fed first cut interest rates in September after cutting rates three times in 2024.
The pace of home and condo sales increased in Miami-Dade County for the second month in a row in October. Region-wide, it was the first month in more than two years total sales increased. It has helped underpin optimism that sales activity will continue picking up.
“The strong finish this year sets up the market for a full-year growth in 2026, underpinned by several favorable tailwinds, lower mortgage rates, sustained condo market stabilization, and an expected increase in out-of-state migration, particularly from New York and California,” Miami Realtors Association Chief Economist Gay Cororaton said.
There’s optimism the lower rates will help buoy residential real estate throughout Florida.