ORLANDO, Fla. — Mortgage rates in the United States have climbed to their highest level since August 2025, according to Zillow data, adding costs for homebuyers during a busy summer home buying season in Orlando.
As of Tuesday, the average interest rate on a 30-year purchase mortgage was 6.771%, according to Zillow. Local real estate and lending professionals said rates in the higher 6% range are putting pressure on buyers, especially first-time homebuyers, but they are not seeing a slowdown in sales.
Will LaValle, a realtor, said he believes buyers have adjusted to higher borrowing costs.
“With mortgage rates spiking, I tend to feel like we’ve already seen the big spike that has worried people,” LaValle said. “It seems to be that 6% is the new norm.”
Joe Jowdy, lender and principal agent with First Equity Financial, said the conflict involving Iran is one factor affecting mortgage rates because of its impact on oil costs and inflation.
“As a result, 30-year interest rates come up with it,” Jowdy said.
Jowdy said first-time homebuyers are being affected most by the increase, because it’s not only the rates going up, but also insurance costs and home prices.
“It’s the first-time homebuyers that are already on a tight budget trying to get into their first home, been renting a while. They’re getting squeezed,” Jowdy said.
Lawrence Bellido, past president of the Orlando Regional REALTOR® Association, said higher interest rates can deter some buyers. But he said people who need to move may still try to purchase a home, including by negotiating or buying down the interest rate.
“Interest rates, although it could deter some people, if they have to move, they’re going to make every effort to purchase and they could negotiate and buy down the interest rate,” Bellido said.
Despite the rates increasing, a report released by the Orlando Regional REALTOR® Association shows Central Florida home sales increased for the fifth month in a row as the summer market heats up. Overall sales rose by 8% from May to June. There were 2,711 sales in May and 2,929 sales in June. Sales have increased every month this year.
Experts said buying a house is still considered to be a good long-term investment for those able to stay in a home long enough.
“If you hold that home long enough, the home value goes up and eventually, it takes time, but eventually your loan balance goes down,” Jowdy said.
For homebuyers trying to secure a lower rate, experts recommend shopping around and comparing rates from local banks, credit unions and larger lenders.
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