How Low Will Sarasota Mortgage Rates Go
While the rate has come down slightly from the high in May 2025, we are still averaging above 6% in most markets. Once the average rate edges below 6%, which is expected within the next 12 months, we will see another run on housing as the fence sitters see their purchasing power rise and they take advantage and pounce on homes in areas that have seen up to a 15% reduction on pricing since the peak in 2022. Is that where we are heading now? Some think we are still a few months away from a big drop.
How can we anticipate what the interest rate will do? Mortgage rates (especially the popular 30-year fixed) tend to move in the same general direction as the 10-year U.S. Treasury yield. That’s because investors see mortgage-backed securities (MBS) as somewhat similar to Treasuries: long-term, relatively safe, fixed-income investments. Other factors also affect rates, like Federal Reserve policy, inflation expectations, demand for MBS, and broader economic conditions.
Mortgage Rates Tumble
“Mortgage rates continue to trend down, increasing optimism for new buyers and current owners alike. As rates continue to drop, the number of homeowners who have the opportunity to refinance is expanding. In fact, the share of market mortgage applications that were for a refinance reached nearly 47%, the highest since October.” – Freddiemac – September 4, 2025
At the moment New Construction builders have teamed up with their preferred lenders to offer rates as low as 3.875% on some inventory homes that they need to move ASAP. For homes that are still under construction or to be built, you may still be able to lock in at 4.99% for a 30 year mortgage. Most builders are very negotiable with price today, and will even pay ALL of your closing costs by using their preferred lender. This won’t last forever though.
I have found a local lender in the Sarasota area offering a rate as low as 4.75%! I tell all my buying clients, Lenders are not created equal, and their offerings and requirements vary depending on your credit score and how much your downpayment will be. If you have over a 720 credit score you typically qualify for the best rate and terms. Either way I am happy to point you to the lenders who have the lowest rates, or who can help with down payment or closing cost assistance (though the rate is higher).
If you are ready to get off the fence, now is a great time to buy!
