As a Florida-based real estate appraiser, I’m closely tracking national monetary policy, which directly impacts our local housing market. On June 18, 2025, Federal Housing Finance Agency (FHFA) Director Bill Pulte made headlines with a bold call for Federal Reserve Chair Jerome Powell to lower interest rates or resign, citing the housing market’s struggles. Here’s what this means for Florida’s home values.
What Pulte Said
On June 18, 2025, Pulte posted on X, stating, “As Chairman of Fannie Mae and Freddie Mac, I can tell you that Jay Powell is hurting the housing market by being Too Late to lower rates. He needs to resign, effective immediately”. He argued that because “President Trump has crushed inflation,” lower rates would enable Fannie Mae and Freddie Mac to expand housing access. Pulte’s posts echo broader pressure from the Trump administration to spur housing market growth through rate cuts.
At the Federal Reserve’s June 18 press conference, Powell defended the Fed’s decision to keep rates unchanged at 4.25–4.5%, emphasizing a strong economy, low (but not yet 2%) inflation, and a robust labor market. He noted the Fed is waiting to assess economic data, including the impact of tariffs, before adjusting policy.
How Steady Rates Might Shape Florida’s Market
Mortgage Rates Stay Elevated
Despite the Fed’s steady policy, 30-year fixed mortgage rates, driven by Treasury yields, were 6.89% as of May 29, 2025, per Freddie Mac. These high rates strain affordability in Florida, where buyers face challenges in high-cost markets like Miami and Naples. As a result, buyers are hesitating, leading to rising inventory and more price negotiations in metros like Orlando and Tampa.
Market Cooling, But Not Collapse
The Fed’s steady rates are fostering a gradual cooldown in Florida’s housing market. In Miami-Dade, Orlando, and Tampa, appraisers are seeing moderated price gains, longer days on market, and more conditional offers tied to financing. However, tight inventory prevents sharp price drops, maintaining stability in many areas.
Regional Sensitivity to Policy Shifts
Coastal states like Florida are particularly sensitive to interest rate changes due to their reliance on mortgage financing and investment properties. High rates sideline rate-sensitive buyers, especially in vacation condo markets, softening demand in these segments. While no specific study confirms amplified price responses in Florida, this aligns with broader economic trends.
Builders and Inventory Dynamics
Pulte has highlighted how high borrowing costs constrain builders, limiting new home construction. In Florida’s suburbs and resort areas like Sarasota and Naples, slower construction tightens inventory, supporting price floors despite cooling demand. This dynamic buffers home values against steep declines.
Final Take: What Should Floridians Expect?
- Home Values: Expect stabilization rather than sharp declines. High mortgage rates may extend sales cycles and cool demand, but limited inventory in many Florida markets will support price stability.
- Buyers: Consider existing listings or explore rate-buydown options to manage high rates. While some analysts predict Fed rate cuts later in 2025, no specific timeline is confirmed.
- Sellers: Market comparables are flattening. Pay close attention to financing conditions in comparable sales and reflect cooling trends and financing challenges in appraisal narratives.
Bottom Line
Bill Pulte’s outspoken push for Powell to cut rates or resign is a rare, direct challenge from the housing sector’s leadership. However, Powell’s data-driven approach suggests rates will remain steady for now, with cuts potentially delayed until economic data, including tariff impacts, justifies action. In Florida, this means a market pause: prices stabilizing, not crashing, with opportunities for savvy buyers navigating high rates.
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