Trust This. Mortgage Rates to Mother’s Day

Central Florida, it’s gettin’ 🥵 hot up in here! Looks like our two weeks of spring are over, and summer ☀️ has arrived.

Don’t Miss: CFRI’s one-day Landlording Academy on Friday, May 13. It always gets 🙌 rave reviews 👏. Register here.

1. Florida’s Legislative Roundup … so far

The Legislature wrapped up its initial session in March, and then a special session in April, and is preparing for another special session in a couple of weeks. The Governor has been busily signing and vetoing bills, many affecting real estate.

Laws change subtly and abruptly. Keeping up with revisions is imperative for real estate brokers, agents, lenders, developers, and investors.

Here are a few new laws:

Here are some that didn’t make it:

Yes, but: Many bills await delivery to the Governor for signing. One such bill would override local rules against pruning and removal of dangerous trees on residential properties. Another one allows property owners to sue local governments that change local ordinances in a way that causes at least a 15% profit reduction for the owner (think AirBnB rentals).

2. Springtime mortgage rate hikes push borrowers up 2.5%

At the end of last week, mortgage applications were up 2.5% over the prior week.

Why it matters: Most everyone assumed that higher interest rates would cool mortgage borrowing and home sales. But it looks like a rush of springtime purchases is pushing mortgage applications back up … if only for a week.

The purchase push is financed mostly by VA and FHA loans. The loans are used by first-time, younger homebuyers with no or low down payments.

The FED on Wednesday raised its short-term interest rate by half a point, the highest increase since 2000. Since then, rate increases had been — at most — a quarter of a point.

The big picture: This is only a one-week increase and is not indicative of a trend in purchasing or borrowing. Many mortgage loan originators have severely cut staffing as refinance activity has dropped off a cliff. In light of the FED’s drive to cool inflation through higher interest rates, this is likely just a last gasp drive of young buyers trying to get into homes before rates go even higher.

For more

3. FinCEN’s GTO renewed and expanded

The Financial Crimes Enforcement Network renewed its existing Geographic Targeting Orders and expanded their coverage to more metro areas.

Why it matters: The fact that the orders continue to be renewed and expanded is an indication that they’re working, giving FinCEN more data to track money as it moves through real estate transactions from and to domestic and international criminals.

The Orders expanded to cover parts of DC, Northern Virginia, Maryland, Maui and Kauai, and Fairfield County, Connecticut.

In short, a report to FinCEN will be filed if a corporate buyer purchases property for cash in one of the targeted areas for more than $300,000.00 ($50K in Baltimore). For example, if an LLC pays $300,000 cash for real estate in Fort Lauderdale, the title company shall file a report with FinCEN that lists the names, addresses, and tax identification numbers of every member of the LLC.

Yes, but: while the orders expanded to some areas, other areas were dropped from the order. Also, amounts have been reduced from $1 million in the earliest orders to a flat $300,000 in all of the targeted zones.

Read the order.

4. Catch up quick

An FAU econ professor’s research shows that Florida’s rents are the nation’s most expensive, but may fall back soon. Orlando Sentinel - Paywall

Homebuyers in Tampa, Orlando, and Jax will need at least 40% more income this year than last to buy a home. Fox Business

Home prices are falling in some metro areas (but none in Florida). National Mortgage Professional

5. Pic du jour

Wishing all our readers who are mothers a Happy Mothers Day weekend. This week’s song is one that brings back happy memories of my mom playing the piano, and I can’t wait until the next time she plays it for me. Hope you like it too.

We hope you found this informative — any feedback is appreciated and can be shared by hitting reply or using the feedback feature below.

Be on the lookout for our next issue! 👋