The Florida Keys mortgage market continues to evolve through the summer of 2026. Here is what buyers and homeowners need to know about current conditions.
Current Rate Environment
Mortgage rates have remained in the mid-6% range for 30-year conventional loans through early July 2026. While this is higher than the historic lows of 2020-2021, rates have stabilized and provide more predictability for buyers planning their purchase.
VA and FHA rates continue to offer savings compared to conventional products, with VA rates in the low-6% range and FHA rates slightly below conventional.
Keys Inventory
Inventory in the Florida Keys remains tight, particularly for single-family homes in the Upper Keys. Condo inventory has improved slightly, giving buyers more options in the condo market. Waterfront properties continue to command premium pricing.
New construction remains limited due to the challenges of building in the Keys: elevated construction costs, strict building codes, and limited available lots.
What This Means for Buyers
If you are shopping in the Keys this summer, be prepared for competition on well-priced properties. Get pre-approved before you start looking, and be ready to act quickly when the right property comes along.
For investment property buyers, the Keys vacation rental market remains strong, making DSCR and investment property financing attractive options.
Looking Ahead
The consensus expectation is that rates will remain in the 6-7% range through the end of 2026. This makes it a good time to focus on finding the right property rather than trying to time the market perfectly.
Contact Austin Edwards to review your specific scenario.