A common question people ask is: When will mortgage interest rates drop? The short answer—not anytime soon, and certainly not by much.
Economist Dr. Rick Harper notes that home prices in our area (the greater Pensacola area) doubled between 2020 and 2022, a period marked by historically low interest rates. We also spoke with local lender Kim Hajek of Hajek Home Loans who told us, “It is cliche ‘date the house, marry the rate’. [But] it’s actually a fact because once rates decline, you’ll have more people in the market buying which will increase sales prices.”
This ties directly into the law of supply and demand: when interest rates fall, demand for homes rises, reducing supply and driving prices higher. If rates were to return to 2020-2022 levels, home prices could skyrocket again—something the market simply can’t sustain.