Current Mortgage Interest Rates

As of early December 2024, mortgage interest rates have experienced slight fluctuations:

• 30-Year Fixed-Rate Mortgages: The average rate has decreased to 6.69%, down from 6.81% the previous week and 7.03% a year ago.
• 15-Year Fixed-Rate Mortgages: The average rate has fallen to 5.96% from 6.1% last week.

These reductions are partly due to recent cuts in the Federal Reserve's benchmark interest rate, which have influenced the yield on U.S. 10-year Treasury bonds, a key factor in mortgage pricing.

Lee County Housing Market Overview

The real estate market in Lee County has shown varied trends across different areas:

• Median Listing Price: In October 2024, the median listing home price was $427,000, reflecting an 8.2% decrease compared to the same period last year.
• Median Sold Price: The median sold home price stood at $385,000.
• Price per Square Foot: The median listing price per square foot was $257.
• Days on Market: Homes in Lee County had a median of 82 days on the market in October 2024, indicating a slight increase from the previous year.

Market Trends and Predictions

Several factors are shaping the current market dynamics:

• Price Adjustments: Certain areas, such as Punta Gorda, have seen home prices decline by 6.5%, bringing the median price to $350,000.
• Luxury Market Growth: The surge in private jet travel has fueled a boom in Florida's luxury housing market, particularly in regions like Naples and Palm Beach County, where home prices have significantly increased.
• Inventory Levels: The supply of homes for sale is predicted to improve, with an 11.7% increase in inventory and a 13.8% rise in new-home construction expected in 2025.

Looking Ahead to 2025

Forecasts suggest that mortgage rates will remain relatively high, averaging around 6.3% throughout 2025, with home prices expected to rise by 3.7%. While the market may become slightly more balanced, affordability challenges are likely to persist due to the combination of elevated mortgage rates and increasing home prices.

Conclusion

Navigating the Lee County housing market requires careful consideration of current mortgage rates, regional price trends, and inventory levels. Prospective buyers and investors should stay informed about economic indicators and regional developments to make well-informed decisions in this evolving market.