The year 2025 has been a journey for the real estate and financing world, marked by significant shifts in the mortgage rate environment. As the year draws to a close, prospective homeowners and those looking to refinance need a clear understanding of where the market stands and how to prepare for 2026.

If you are navigating the unique complexities of buying a home in Florida, especially in the large and dynamic Jacksonville area, working with a local expert is more critical than ever. As your dedicated mortgage broker, I’m here to break down the trends and offer actionable advice.

What Happened to Mortgage Rates in 2025?

Throughout the year, we saw a notable moderation in mortgage interest rates from their recent peaks. While we haven’t returned to the ultra-low rates of previous years, the general trend suggests an easing of financial pressure on borrowers.

  • Moderating Rates: Expert forecasts, including those from Fannie Mae, predicted rates would hover around the low to mid-6% range for much of 2025, with a potential dip toward the high 5% range by the end of 2026. This stability, after the extreme volatility of the past, is a welcome sign.
  • A Refinance Resurgence: The easing of rates has begun to unlock new opportunities for homeowners. As rates trend downward, we project that refinance activity will grow significantly in 2026, as borrowers look to lower their monthly payments or shift from Adjustable-Rate Mortgages (ARMs).

The Jacksonville, Florida Housing Market: A Local Look

The broader national trends impact the housing market, but the greater Jacksonville area has its own unique dynamics that buyers and sellers must consider.

Home Price & Inventory Updates

While some regions have seen soaring prices, the Jacksonville area has shown signs of market normalization, moving toward a more balanced state.

  • Inventory is Key: We’ve seen inventory levels increase across Florida, which is a positive sign for buyers who have been frustrated by lack of choice. Increased supply helps to cool down the intense competition.
  • Shifting Prices: Recent data from October 2025 showed the median home sale price in Jacksonville around $295K, reflecting a slight dip year-over-year. This indicates a move away from the frantic seller’s market, which means buyers have more room to negotiate and a bit more time to make a decision.

The Florida Factor: Insurance Costs

A unique challenge in the Florida market is the continually rising cost of homeowners’ insurance, especially in coastal areas and those prone to weather events. This higher cost directly affects your total monthly housing payment (PITI) and must be factored into your budget.

The takeaway for local borrowers: A lower mortgage rate can help offset the growing expense of insurance, emphasizing the value of securing the best possible rate.

🔑 3 Must-Know Tips for 2026 Borrowers

Whether you are a first-time buyer or a current homeowner looking to refinance, positioning yourself for success in 2026 requires preparation.

1. Understand the Refinance Window

If you are holding a loan from the high-rate environment of 2023-2024, the coming year may be your opportunity. Consult with a knowledgeable mortgage broker to explore a rate-and-term refinance. We can set up a personalized rate-watch alert for you.

2. Get Pre-Approved Before You Look

In a market that is still competitive, a strong pre-approval letter from a trusted mortgage lender is your most powerful tool. It demonstrates to sellers and their agents that you are a serious and qualified buyer, giving you a competitive edge.

3. Partner with a Local Expert

The difference between a big-bank loan officer and an independent mortgage broker in Jacksonville, FL like me is access. I work with multiple lenders, not just one, giving you a wider choice of products and often a better, more competitive rate tailored to the specific needs of a Florida home.

Client Note: My goal is to provide exceptional service and secure you a lower rate, lower payment, or lower closing costs than you would typically find on your own.

Ready to Call Walt? Your Next Step for 2026

Don’t let market uncertainty paralyze your homeownership goals. With the right strategy and a committed mortgage broker by your side, 2026 can be the year you achieve your financing objectives.

  • Actionable CTA: Schedule a free, no-obligation consultation with me, Walt Bianchi, at Better Call Walt. We’ll analyze your unique financial situation and craft a customized loan strategy to make the most of the changing market.

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