Real Estate
Home›Real Estate›Residential›South Florida developers weigh slower sales as mortgag…
South Florida developers weigh slower sales as mortgage rates stay high
Freddie Mac data show the 30-year fixed-rate mortgage averaged 6.7% last week, the highest level in more than a year, while inventory rose to about 9.3 months and median new-home prices sat below June.
Master-planned community developers in South Florida are preparing for a slower sales pace as mortgage rates remain elevated and affordability constraints limit buyers, according to remarks at Bisnow’s Florida Master-Planned Community Summit.
Meritage Homes Division President Jon Isherwood said affordability is best viewed through the full monthly cost bundle, including mortgage, insurance, CDD, HOA, and utilities, adding that even small payment changes can determine whether buyers qualify.
Freddie Mac data cited by Bisnow showed the 30-year fixed-rate mortgage averaged 6.7% last week, the highest level in more than a year and the fifth consecutive week of increases. The outlet also noted new home sales were 5.6% below June 2025 levels in July, inventory increased 3% to roughly 9.3 months, and the median sales price was $398,300, 6% below June.
Bisnow also pointed to strength in local pricing, with median single-family sales prices rising nearly 12% in Palm Beach County, about 4% in Miami-Dade County, and 2% in Broward County as of June, even as the buying barrier tightened. PulteGroup Vice President of Land Acquisition Andrew Maxey said the barrier to entry is as high as ever and is getting higher, in part as wealthy buyers seek alternatives to proposed wealth taxes elsewhere.