Mortgage Rates Drop By A Full Percent—Time For Sarasota Homebuyers Act?

Bev Murray Real Estate

Over the past few weeks, mortgage rates have decreased by a full percent from their recent highs, presenting a potential opportunity for buyers in our area.

Rates have been a major focus in the Sarasota housing market recently, especially given their significant impact on affordability for many home buyers. If you’ve been holding off on making a move, waiting for rates to drop, your patience may have finally payed off!

With that said you may also be wondering if you should wait a little longer to see how low mortgage rates can go. While it’s tempting to hold out for the rates we saw during the pandemic, it’s important to keep in mind that those record-low rates are behind us. If you’re hoping for a return to 3% mortgage rates, experts agree that’s unlikely. Greg McBride, Chief Financial Analyst at Bankrate, puts it plainly:

The hopes for lower interest rates need the reality check that 'lower' doesn't mean we're going back to 3% mortgage rates... the best we may be able to hope for over the next year is 5.5 to 6%.

With mortgage rates showing a recent decrease, now may be the perfect time to jump back into the market. This dip could be just the opportunity you've been waiting for.

Are You Waiting for Lower Mortgage Rates? Here’s Why Now Might Be the Time to Act

Understanding the Connection Between Rates and Buyer Demand

If you decide to wait for mortgage rates to drop further, you might find yourself facing increased competition as other buyers restart their home searches.

In real estate, there’s a clear relationship between mortgage rates and buyer demand. Typically, higher rates dampen demand, but when rates start to decrease, it can reignite interest from potential buyers. This trend is especially relevant in Sarasota, where demand remains strong due to the area’s desirable lifestyle and limited housing inventory. As a recent Bankrate article notes:

If you’re ready to buy, now might be the time to strike. Home prices have been rising primarily because of a longstanding shortage of homes for sale. That’s unlikely to change, and if mortgage rates do fall below 6%, it’s possible buyers would enter the market en masse, further pushing up prices and resurrecting bidding wars.

Bottom Line

If you’ve been waiting to make your move in Sarasota’s vibrant real estate market, the recent downward trend in mortgage rates might be the nudge you need. Rates have reached their lowest point in months, presenting a prime opportunity to act before the competition heats up.

If you’re ready to explore your options, reach out to me today. Together, we can navigate the current market and find the right home for you.

1523 Bayshore Rd Nokomis

$3.5M 1523 Bayshore Rd Nokomis FL 34275

5 beds
3 baths
4616 sqft
0.97 acres
1989 year built

One or more photo(s) has been virtually staged. This custom-built, one-owner, four-bedroom, 4,600 square foot home is located above the base flood elevation on a wide one-acre parcel, offering privacy, space, and over 130 linear feet of private water frontage on a wide stretch of the intracoastal waterway. A huge bonus: it is not in a flood zone and sits at 13 ft elevation. There was zero flood/surge damage from Helene or Milton. The home has wonderful curb appeal and is set back from the street with a circular driveway and a brick pathway flanked by a well-stocked koi pond. You enter the two-story foyer which opens up onto a large, light filled living room with soaring 19 ft ceilings, rich wood floors, a wood-burning fireplace with floor to ceiling coral stone surround, and sliders out to the sun-soaked pool deck. There is a formal dining room, a separate family room with wet bar and ice maker, a large kitchen with an adjacent breakfast room, a butler's pantry and an antechamber that is set up to be a wine storage room. The kitchen has a double oven, huge Subzero freezer, separate refrigerator and plenty of countertop space, and a handy passthrough to the family room. There are two bedrooms on the first floor and a bathroom which serves as a pool bath if you don’t want to rinse off in the outdoor shower. In addition to the four bedrooms and office in the main house, there are two additional air-conditioned work/hobby spaces in the garage, which is accessed via a covered walkway. One of the rooms faces north and was used as an art room. The other is sound-proofed and could work well as an office, dark room or gym. The oversized garage has a workbench. The second floor has two sections connected via a walkway overlooking the main living area. To the right is a nice sized bedroom and ensuite bathroom and to the left is the primary suite with a beautiful wood-paneled office with rich wooded cabinetry and a wood burning fireplace. A screened balcony off the bedroom and office offers unparalleled views of the intracoastal waterway and some of the Gulf coast’s finest sunset skies. These wide-open west-facing views are part of what makes this home an incredible opportunity for its new owner. There is a covered screened lanai as well as uncovered outdoor living and dining space. The pool is huge and has a max depth of 8 ft. Enjoy a navigable route out to the main channel. Take this incredible .97-acre waterfront property, make it your own, and enjoy endless sunsets and all that the Florida lifestyle has to offer!