March 2025 Tampa Bay Market Update: Lower Mortgage Rates & Key Changes to Watch

The real estate market is always shifting, and March 2025 is bringing some major changes that buyers, sellers, and investors should know about. From a dip in mortgage rates to new FHA lending rules and rising property insurance costs, let’s break down the latest market trends and how they impact you.

📉 Mortgage Rates Drop—Is Now the Time to Buy?

Good news for homebuyers and refinancers: Mortgage rates have fallen! The 30-year fixed rate dropped to 6.73%, the lowest level since December 2024, while FHA loans are now at 6.42%. This shift has sparked a surge in mortgage activity:

• Mortgage applications jumped 20.4% in just one week.
• Refinancing is up 37% compared to last week and 83% higher than last year.
• Purchase applications increased 9% week-over-week.

What This Means for Buyers

✅ Lower rates = lower monthly payments, making homeownership more affordable.
✅ More buyers entering the market could increase competition—acting fast is key!
✅ Homeowners who locked in higher rates may now benefit from refinancing.

If you've been on the fence about buying or refinancing, now is a great time to explore your options.

🏡 FHA Expands Lending Rules: More Buyers Can Now Qualify

The Federal Housing Administration (FHA) just announced a game-changing update that expands acceptable income sources for borrowers. Starting March 14, 2025, homebuyers will be able to use rental income from boarders (roommates, live-in family members, tenants) to qualify for a mortgage.

Key Changes:

✔ Buyers can count boarder income toward mortgage approval.
✔ Only 12 months of rental history is required (down from 2 years).
✔ Up to 30% of a borrower’s income can come from boarder rent.
✔ Proof can include bank statements, canceled checks, deposit slips, or tax returns.

Why This Matters: This update makes it easier for multi-generational families and renters with roommates to qualify for a home loan, opening up homeownership to more people in high-cost areas.

If you or someone you know has been struggling to qualify for a loan, this new rule could be the break you need!

🔥 Rising Property Insurance Costs—What Homebuyers Need to Know

Property insurance premiums are soaring, impacting affordability for both buyers and homeowners. The average home insurance premium jumped 14% in 2024 (an increase of $276 per year), bringing the national average to $2,290 annually. Over the past five years, premiums have surged 61%.

How This Affects You:

⚠ Higher insurance costs can increase your monthly housing expenses.
⚠ More buyers are shopping around for insurance, with 11.4% of mortgage borrowers switching providers last year.
⚠ New homeowners are taking on higher deductibles to offset rising costs.

How to Prepare:

✅ Get insurance quotes early before making an offer.
✅ Factor higher premiums into your home budget.
✅ Review and adjust your policy to find potential savings.

As affordability becomes a bigger challenge, staying informed about these costs is more important than ever.

Final Thoughts

The March 2025 market is bringing lower mortgage rates, expanded loan qualification options, and rising insurance costs. Whether you’re buying, selling, refinancing, or investing, staying ahead of these changes can help you make smarter decisions.

📩 Thinking about making a move? Contact us today to explore your options and take advantage of these new market conditions!