The Fed raised interest rates by 75 basis points in the last week of July matching the previous hike in June. The Fed is on a mission to slow the economy and fight sky-high inflation.
Nationwide, the housing market is beginning to see early signs of slowing with more inventory hitting the market.
In South Florida, the number of total closed sales for housing in June dropped 27.9% compared to last year, but the median sales price continues to rise month-after-month. There was only a brief decline in April for condos/townhomes after the first rate hike in March of 25 basis points.
The median time to sale has remained consistent since March, when it decreased despite the March rate hike, according to Florida Realtors.
While South Florida median sales prices have continued to rise in June, we will not see the market trends for July until new data is released by the end of the month.
More rate hikes are expected after rate-setting committee meetings in September and December. Mortgage rates in South Florida are likely to follow.
