Tampa experts weigh in as high rates challenge homeownership

TAMPA, Fla. — June marks National Homeownership Month, but for many Tampa Bay residents, buying a home still feels out of reach.

Mortgage rates remain above 6.5%, and experts say inflation — fueled in part by global instability and rising energy costs — continues to keep borrowing expensive.

“We got used to rates at 2.9 and 2.3%. Those rates are not coming back unless there’s another major crisis like COVID,” said Sylvia Alvarez, CEO of the Housing & Education Alliance.

Alvarez says today’s market is forcing many would-be buyers to pause, especially as everyday costs remain high.

“People are scared right now. There’s global uncertainty — gas, groceries — it’s all connected. We’ve definitely seen a drop-off,” she said.

According to the National Association of Realtors, first-time buyers are continuing to be priced out of the market, adding to affordability challenges across the region.

Still, Alvarez says waiting may not be the best strategy for everyone.

“If you can qualify, buy a house now,” she said.

With a new Federal Reserve chair in place, many are watching for potential rate cuts. However, Alvarez says relief may not come quickly.

“The new Fed chair is more market-oriented. That likely means rates may not fall as quickly as people hope. Buyers and lenders should prepare for continued uncertainty and elevated rates until inflation is clearly under control,” she explained.

If mortgage relief remains limited, some are looking to other options — including proposed property tax changes in Florida — as a way to ease costs for homeowners.

“The question isn’t whether tax relief is desirable. It is. The question is how Florida replaces that lost revenue without impacting essential services,” Alvarez said.

Despite the challenges, Alvarez says homeownership remains a long-term investment and, in some cases, a more stable option than renting.

“Buying can actually be safer than renting. If you fall behind on rent, you’re out quickly. Lenders are more likely to work with homeowners,” she said.

To help residents better understand their options, two housing events are taking place in Tampa this weekend.

The Housing & Education Alliance will host a homebuyer workshop at 10 a.m. Saturday at the CareerSource building. The Tampa Community Redevelopment Agency will also hold a housing fair at 9 a.m. at the Fair Oaks Community Center.

Both events will offer guidance on the home-buying process and information on down payment assistance programs.