Inventory continues improving across Tampa Bay while average mortgage rates remain in the mid-6% range. Learn what buyers, homeowners, and self-employed borrowers should know this week.
For context on whether now is a good time to buy, see Redfin’s analysis: Is Now a Good Time to Buy a House?
Mortgage Rate Update
Average mortgage rates moved slightly higher during the week but remain below the highs seen in late 2023. Average 30-year fixed mortgage rates are currently in the mid-6% range, while FHA and VA averages are generally pricing lower than conventional averages, depending on borrower profile, loan structure, credit, points, and program details.
Mortgage rates continue to be influenced by inflation data, Treasury yields, employment reports, and market expectations around Federal Reserve policy. The Fed does not directly set mortgage rates, but market expectations about inflation and future Fed decisions can move mortgage pricing quickly.
Many buyers are still waiting for lower rates. That is understandable. But if rates eventually decline, buyer demand may increase again. That could mean more competition for the same homes. For some buyers, today’s increased inventory and negotiating leverage may offset part of the higher-rate environment.
Tampa Bay Housing Market Trends
The local market is not the same market we saw during the pandemic buying frenzy. Inventory has improved, buyers have more choices, and sellers are having to compete more seriously for attention.
For buyers, this means more homes to choose from, fewer bidding wars, more negotiating power, and more opportunities for seller-paid closing costs or rate buydown assistance.
For sellers, pricing correctly from the beginning is becoming increasingly important. Homes that are clean, well-prepared, and priced realistically continue to receive attention. Overpriced homes are more likely to sit, require price reductions, or lose momentum after the first few weeks on the market.
Source: Freddie Mac
Self-Employed Borrower Corner
One of the biggest misconceptions I hear from self-employed borrowers is: ‘I don’t qualify because my tax returns show very little income.’ That is not always true.
Business owners, independent contractors, 1099 earners, and self-employed professionals often have more options than they realize. Depending on the full scenario, a borrower may be able to use alternative income documentation instead of relying only on traditional tax return calculations.
Potential options may include bank statement loans, DSCR investor loans, VOE-based income programs, alternative documentation options, and business-purpose investor financing. The right option depends on the borrower’s goals, property type, credit profile, down payment, reserves, and how income is documented.
For many self-employed borrowers, strategy matters. A strong loan review should look at more than one path before assuming the borrower does not qualify.
Federal Reserve Watch
The next Federal Reserve meeting is scheduled for mid-June. Current expectations are that the Fed will likely remain cautious while continuing to monitor inflation and economic conditions.
Mortgage rates do not move directly with Fed decisions, but bond markets often react to what investors believe the Fed may do next. That is why mortgage rates can move before a Fed meeting, after inflation reports, or even after comments from Fed officials.
Homeowner Tip of the Week
If you have owned your home for more than two years, review your homeowners insurance policy before renewal. Many Florida homeowners have seen significant premium changes over the past few years. Shopping coverage before renewal may help identify savings opportunities without sacrificing important protection.
More Than Mortgages Podcast
Upcoming podcast topics continue focusing on self-employed borrowers, Tampa Bay real estate trends, realtor insights, and mortgage strategies buyers can use in today’s market. If there is a topic you would like covered, send it over.
Final Thoughts
The biggest story right now is not just mortgage rates. It is opportunity. Buyers today have more choices, more negotiating power, and more financing options than they have had in years.
For the right buyer, waiting may not always be the best strategy. The better move is to get clear on your numbers, understand your loan options, and be ready when the right property appears.
Author Bio
Rafael ‘Rafi’ Castro is a Tampa Bay mortgage broker with Marymont Financial Services. He specializes in helping first-time buyers, self-employed borrowers, business owners, investors, and Florida homeowners navigate the mortgage process with practical guidance and clear financing strategies.
Rafael ‘Rafi’ Castro
Mortgage Loan Originator | Marymont Financial Services
NMLS #2380091
Phone: 813.469.7568
Phone: 813.590.0031
Email: rcastro@marymontfs.com
Serving homebuyers throughout Florida
