As June marks National Homeownership Month, many Tampa Bay residents are still struggling to enter the housing market, with mortgage rates remaining above 6.5% and everyday costs high.
Experts say inflation — driven in part by global instability and rising energy prices — continues to make borrowing expensive.
Sylvia Alvarez, CEO of the Housing & Education Alliance, says buyers should not expect a return to the historically low rates seen in recent years. “We got used to rates at 2.9 and 2.3%,” she said. “Those rates are not coming back unless there’s another major crisis like COVID.”
Alvarez says the uncertainty is keeping many potential buyers on the sidelines. “People are scared right now. There’s global uncertainty — gas, groceries — it’s all connected. We’ve definitely seen a drop-off,” she said.
Despite that, she is advising qualified buyers not to wait. “If you can qualify, buy a house now,” Alvarez said, adding that homeownership can offer more stability than renting. “If you fall behind on rent, you’re out quickly. Lenders are more likely to work with homeowners.”
With a new Federal Reserve chair now in place, Alvarez says rate relief is unlikely to arrive quickly. “The new Fed chair is more market-oriented. That likely means rates may not fall as quickly as people hope,” she said, urging buyers and lenders to prepare for continued elevated rates until inflation is clearly under control.
The National Association of Realtors reports that first-time buyers continue to be priced out of the market, deepening affordability challenges across the region.
Separately, proposed property tax changes in Florida are being watched as a potential source of relief for homeowners, though Alvarez noted a key concern: “The question isn’t whether tax relief is desirable. It is. The question is how Florida replaces that lost revenue without impacting essential services.”
Two local events this weekend aim to help residents navigate their options. The Housing & Education Alliance will host a homebuyer workshop at 10 a.m. Saturday at the CareerSource building, and the Tampa Community Redevelopment Agency will hold a housing fair at 9 a.m. at the Fair Oaks Community Center. Both events will offer information on the home-buying process and available down payment assistance programs.
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