Insurance, Hometown Hero’s, Interest Rates on Buyers, all Florida Residents & This Weeks Open Houses

Insurance Rates, Interest Rates and Hometown Heroes are having an impact on buyers of Real Estate. In addition, every current Florida resident needs to be aware of what is occurring with their insurance policy as this effects all homeowners.  We had a sales meeting with an insurance and mortgage expert this week to talk about some of the major changes in the homeowner’s insurance business including the My Safe Florida Home Program, the $100 million Hometown Heroes for down payment assistance, and interest rate impact on the Real Estate market.

Insurance carrier availability in our counties has nearly doubled since 2020.  5 carriers have gone out of business (one this past week) and the number of carriers available to write has gone from 34 to 10.  Ross Komarinetz of Brightway Insurance in Juno Beach told me that 99% of what he is writing is Citizens. Citizens has nearly doubled the number of homes it is insuring and went from insurance carrier of last result to insurance carrier of first result. There are lots of reasons for this including social inflation (looking at insurance companies as faceless corporations), fraud and assignment of benefits, roof age restrictions, water damage, litigation for profit, reinsurance shortages and lots of claims from Hurricane Irma and Hurricane Michael claims.

READ MORE to get the full story including must-know strategies if you are buying, selling, or just residing in a Florida home.

The mortgage industry is also seeing drastic cost increases.  Interest rates have gone from 3% at the beginning of the year to 6.25%.  Historically, 6% rates are very low as rates never really got too far below 6% until after 2008.  The difference in purchasing power brings a $500,000 loan down to $342,368 and $970.57 more a month for a borrower.  Rates still might go up but as they do and if the economy in general softens, then historically they always go down. There is an old saying that you “Marry the House and Date the Rate”. One can always refinance. Rate increases will undoubtedly increase inventory nationwide, but we are starting at such a low base of inventory locally mixed with high demand, an abundance of replacement buyers, no land east of the Turnpike/I95, supply chain issues, and so many buyers coming of purchasing age and relocating here in need of shelter.  It should have some effect on housing locally but only so much.

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In good news for essential local workers, the Hometown Heroes Act is allocating $100 million towards down payment assistance (DPA) for first responders and front-line workers. Up to $25,000 is available towards down payment or closing costs.  It’s fairly liberal as to who is eligible.  Ryan Brown of Cross Country mortgage breaks down all the of this.

READ MORE to learn about all professions eligible, exact savings, appraisal gap strategies, minimum requirements and much more. If you know of someone who is a local essential worker (military, teacher, police, firefighter, Mental Health, Medical and much more, please forward this to them as this program will only last as long as the $100 million is available.