Mortgage Rates Dip to the Lowest Level in Over a Year as the Market Finds Its Footing

The Big Picture

Mortgage rates moved lower this week. According to Freddie Mac’s Primary Mortgage Market Survey, the average 30-year fixed-rate mortgage fell to 6.06%, down from 6.16% the prior week. For perspective, that same rate was 7.04% one year ago.

That matters — not because we’ve suddenly entered a low-rate environment, but because the market is settling into a more stable and predictable range. This kind of movement builds confidence, not hype.

And to answer the question many people are asking:
No, the national average did not drop below 6% — but it moved close enough to reopen conversations that were shut down a year ago.

For buyers and homeowners who financed between 2022 and early 2025, this change is meaningful.

Why the Fed Cut Didn’t Push Rates Much Lower

You may have seen headlines noting that the Federal Reserve cut the Fed Funds rate by another quarter of a percent.

So why didn’t mortgage rates drop sharply?

Because the market already expected it.

Mortgage rates don’t move based on what the Fed does — they move based on what investors expect the Fed to do. That quarter-point cut had already been priced into bonds well before the Fed meeting. When the announcement finally came, there was no surprise — and without surprise, there’s no sudden reaction.

That’s why rates edged lower instead of plunging.

Florida Market Overview

Across Florida, the housing market continues its slow shift toward balance.

Inventory remains higher than in recent years, and buyer urgency has cooled — not disappeared. Buyers are taking more time, comparing options, and negotiating again. Sellers are adjusting expectations to match today’s conditions.

This is not a weak market.
It’s a normalizing market.

Regional Snapshot (Florida-Wide)

  • South Florida: More listings, more negotiation, pricing discipline matters
  • Central Florida: Builders remain active, using incentives, credits, and rate buydowns to move inventory
  • North Florida: Affordability continues to support steady demand

Across the state, emotional decision-making is giving way to more deliberate choices.

Florida Economic Reality Check

Florida’s economy remains active, but pressures are still very real.

  • Jobs are still being created
  • Population inflow continues
  • Inflation remains above the Federal Reserve’s target
  • The cost of living — groceries, insurance, taxes — is still straining household budgets

Because of that, buyers are becoming more practical and more payment-focused. The conversation has shifted from “What’s the rate?” to “What can I comfortably afford?”

What It Means for Buyers

  • Rates are lower than a year ago, but still require planning
  • Inventory gives buyers more leverage than they’ve had in years
  • Fewer bidding wars mean better negotiating opportunities
  • Preparation matters more than speed
  • If you financed between 2022–2025, it’s worth reviewing whether your loan structure still makes sense

What It Means for Sellers

  • Buyers are active, but selective
  • Pricing correctly is critical
  • Homes that show well still sell
  • Flexibility on credits or concessions can make the difference

Bottom Line

Mortgage rates didn’t collapse — and they didn’t need to.

A move to 6.06%, combined with higher inventory and more rational buyer behavior, is exactly what a healthier market looks like. Florida’s housing market is entering 2026 more balanced, more realistic, and more strategy-driven.

Talk strategy anytime at MortgageSimplified.net
Because real decisions are made with clear eyes — not headlines.

Clay Edmonds is the Corporate Educator and Senior Complete Mortgage Advisor at Complete Mortgage LLC in Hollywood, Florida. He created MortgageSimplified.net and serves as its chief content creator with the purpose of simplifying the mortgage financing process so consumers and real estate professionals can make better, more informed mortgage decisions.

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