As Roy Cohn once instructed a young Donald Trump, much can be accomplished by attacking first and dealing with the consequences later. I get opinions from both sides: “Rob, when are you going to wise up? Yesterday’s Commentary discussed a lopsided pro-Trump view of the recent tariff activity, and how the changes may impact mortgage rates. But China made no concessions. By now, most of us are familiar with this pattern: Trump makes big claims about what his tariffs can get, only for him to later back down without the other country giving up anything meaningful. It happened with Mexico, Canada, and most of Trump’s ‘Liberation Day’ levies. Despite his claims, the United States seems to need other countries’ trade as much as they need ours, diminishing Trump’s negotiating position. Meanwhile, our financial markets are jacked around, and our potential borrowers are afraid to pull the trigger. Your readers should keep that in mind.” (Today’s podcast can be found here and Sponsored by TRUE and its Mortgage Operations Service (MOS) AI background worker, which transforms borrower documents into instant, trustworthy data for real-time decisioning. TRUE helps lenders accelerate decisions, cut costs, and deliver superior borrower experience, all without a $100M tech budget. Hear an interview with Hometap’s Josh Gaffney on the evolving regulatory landscape for Home Equity Investments (HEIs), highlighting state-by-state approaches, industry-led initiatives, and what an ideal regulatory framework could look like as the market matures.)

Florida mortgage rates generally mirror national trends but can be slightly higher. As of late 2024, mortgage rates in Florida are exhibiting volatility, influenced by factors like inflation, Federal Reserve policy, and economic growth. The average 30-year fixed mortgage rate in Florida hovers around the national average. Rate fluctuations impact housing affordability and demand. Higher rates can lead to decreased home sales and price stagnation, while lower rates can stimulate the market. Potential Florida homebuyers should monitor rate changes closely and consult with mortgage professionals for personalized advice. Local economic conditions can also influence Florida-specific mortgage rates.

Florida property investment currently faces a complex market. Population growth continues, with Florida consistently ranking among the fastest-growing states, fueling demand. However, rising insurance costs pose a significant challenge; premiums are 3x the national average in some areas, impacting profitability. Property taxes are relatively stable, generally around 0.98% statewide. Tourism remains a powerful economic driver, supporting short-term rental income, though regulations vary by locality and are tightening in some cities. The median home price in Florida fluctuates but remains above the national average, reflecting the desirability and limited inventory in key areas. Interest rate hikes impact affordability and investment financing. Coastal properties face increased risks from climate change and rising sea levels, potentially affecting long-term value. Real estate appreciation rates have slowed compared to the pandemic boom, requiring careful market analysis. Focus should be on markets with diversified economies beyond tourism and areas with robust infrastructure investment.