December 15th, 2009 2:46 PM by Scott Bray
From The MBA (Mortgage Bankers Association) . I found it to be an interesting insight into the market. It doesn't strictly talk about Florida but some of the discussion below could be thought about it being about Florida. I have heard that the higher rates were expected by the fall of 2010.
-----------------------------------------------------------------------Slowly rising interest rates coupled with relatively stagnant home sales will have repercussions in the mortgage industry over the next few quarters according to the Mortgage Bankers Associations (MBA) Mortgage Finance Forecast for the Fourth Quarter of 2009.
Property values will not recover until the overhang of unsold inventory returns to normal levels, reducing the excess supply. This excess supply will remain unless and until homebuyers return to the market in force. Even though affordability remains near record levels, there has not been any strong indication that the demand for homes is recovering. However, it is important to remember that affordability is a three-legged stool. Mortgage rates, home prices, and household incomes all impact affordability. Today, mortgage rates remain near record lows, and with the continued decline in home prices, for those with resources, it is a buyers’ market like we haven’t seen in years. Obviously, the problem is that there are not enough potential homebuyers who have the income and downpayment, and who feel confident both that the housing market will recover, and that their job situation is secure, to boost demand despite the improvements in affordability.