Buying a home in Florida nowadays often requires some financial acrobatics. After all, the average cost of a detached home in the Sunshine State is quickly approaching half a million dollars. If you want to purchase in an in-demand area, you are likely to spend well over a million bucks.
If you are a first-time homebuyer, you have probably been waiting for the red-hot housing market to cool. According to one indicator, some relief for first-time homebuyers who are trying to compete may be on the horizon.
Mortgage applications are down
As CNBC reports, mortgage applications have decreased by nearly 2% in just one week. Fewer applications for mortgages could mean fewer individuals are buying homes. This, of course, is likely to lead to an increase in supply, which can cause home prices to drop somewhat. The recent jump in interest rates may be partly to blame for the recent drop in mortgage applications.
Cooling takes time
Even though the decrease in mortgage applications is certainly good news for first-time homebuyers, you are not likely to see much of a change for some time. Remember, market forces need time to work. If you want to purchase your first home, it may be advisable to wait a few months to see how the market looks.
Waiting does not come without its own risks, as you might miss out on your dream home or even watch the housing market become even less appealing to homebuyers. Ultimately, by improving your credit score and focusing on a down payment, you can help to ensure you are ready to act when the time is right.