If you've been watching the real estate headlines, you already know that mortgage rates have been a hot topic this year. After several years of fluctuating rates, 2025 is shaping up to be a pivotal year for both buyers and sellers—especially those in the vacation home market.
So, what’s going on with mortgage rates right now? And more importantly, how does it affect you as a vacation homeowner, buyer, or investor?
🔍 What's Happening with Mortgage Rates in 2025?
As of early 2025, mortgage rates have hovered around the 6.5% to 7% range for a standard 30-year fixed mortgage. Although this is higher than the ultra-low rates we saw in 2020–2021, economists are forecasting potential rate stabilization or even gradual decreases by late 2025 if inflation cools further and the Federal Reserve adjusts its stance.
However, the current rates have already started to shift buyer behavior. Many are choosing to buy now to avoid further price increases in homes, while others are locking in now in case rates climb again.
🏠 What This Means for Vacation Home Sellers
If you’re a vacation homeowner considering selling in Orlando, Kissimmee, Davenport, Clermont, or surrounding areas, here’s the good news:
✅ Inventory remains low, especially for turnkey vacation homes
✅ Spring and summer bring more serious buyers into the market
✅ Buyers are still willing to pay a premium for well-located, income-generating homes
⚠️ However, as mortgage rates impact buyer affordability, pricing and strategic marketing are more important than ever. This is where our proven listing and negotiation strategies come into play—we consistently net our sellers more than market averages, even in shifting conditions.
💡 What Buyers Need to Know
If you're thinking of buying, now is the time to:
Get pre-approved and lock in your rate
Work with an experienced team who understands vacation rental investment
Understand how mortgage rates affect your cash flow and ROI
Waiting for lower rates could result in more buyer competition and rising home prices, especially in high-demand vacation zones near Disney and other top attractions.
📲 What Should You Do Now?
Whether you're selling or buying, staying ahead of the market is critical. Rates may not be as low as they were—but they are workable, and there are still smart ways to profit from the current market conditions.
📌 Want to know your vacation home's current market value?
Get your free property evaluation today:
👉 www.vacayreflorida.com/propertyevaluation
📌 Need help deciding whether to sell now or wait?
Contact Michelle Baydemir, Broker of Vacay & Co Real Estate, at
📧 [email protected] | 📞 321-333-1338