Mortgage rates rose across all mortgage loan types, with the 30-year fixed-rate mortgage increasing by almost a quarter of a percent from last week. This was driven by the prospect of a faster than expected tightening of monetary policy in response to continued inflation exacerbated by uncertainty in labor and supply chains. The rise in mortgage rates so far this year has not yet affected purchase demand, but given the fast pace of home price growth, it will likely dampen demand in the near future.
Will Omicron Ding the Number of Out-of-State Buyers?
Florida tourism officials don’t think so, though a panel of state economists slightly lowered their six-month expectations for Canadian and overseas tourists.
A top Florida tourism official called the future of travel to the state “bright” and said there are no plans to slow marketing efforts, even with the rapid spread of the omicron variant of the coronavirus.
Last month, a panel of state economists slightly lowered expectations through the middle of 2022 for Canadian and overseas travelers, anticipating the omicron variant would slow, at least temporarily, Florida’s resurging tourism.
Florida’s tourism industry exceeded expectations in the third quarter of 2021, drawing 32.6 million visitors, which was 2 million more than forecast earlier this year and 0.3% above the overall number of visitors in the third quarter of 2019 – before the pandemic began. The 2021 third-quarter totals followed 31.7 million visitors in the second quarter, which was 2.2% below the second quarter of 2019. Almost 90% of visitors in 2021 had come from other states, though Visit Florida officials expected a resurgence in Canadian and overseas visitors after the White House eased travel restrictions in November.
