The National Market:
Fannie Mae projects that mortgage interest rates will decline gradually over the next several months and continue trending downward through the end of 2026.
While the Federal Reserve is widely expected to cut short-term interest rates next week, those cuts do not immediately translate into lower mortgage rates. Mortgage rates move independently, reacting instead to daily shifts in the bond market.
Both the Fed and the bond market respond to the same underlying economic signals—inflation, employment, and overall economic growth. The key difference:
The Fed meets roughly every six weeks to adjust policy. The bond market digests new economic data instantly, meaning mortgage rates can change daily, even hourly.
The bottom line ... Fed policy direction absolutely matters, but mortgage rates are ultimately shaped by real-time investors in the bond market.
The Local Market: August 2025 vs. August 2024
Single Family Homes
Inventory: Homes for sale rose slightly, from 1,751 to 1,808 (+57).
Sales Volume: Closings increased from 214 to 226 (+12).
Average Sold Price: Fell sharply from $2,065,340 to $1,394,518 (-670,822).
Note: The high-end luxury segment is a key driver of that decline.
Condos
Inventory: Condos for sale edged down slightly, from 1,400 to 1,380 (-20).
Sales Volume: Closed sales nudged up from 96 to 101 (+5).
Average Sold Price: Softened modestly, from $777,984 to $742,785 (-$35,199).
A summary of August Average Sold Prices:
Single Family Condo
30-A $2,432,467 (81) $1,289,250 (16)
Destin/Miramar Beach $1,335,210 (48) $ 705,650 (72)
Ft. Walton Beach $ 374,816 (63) $ 275,886 (13)
Ed Sez: The official mortgage rate on a 30 year fixed today is 6.29%. Some lenders are now quoting rates as low as 5 5/8. Just in time for Christmas!!
Ed & Terri Smith
RE/MAX Coastal Properties
Selling Emerald Coast Real Estate Since 1987!
Inlet Beach - 30A - Santa Rosa Beach - Miramar Beach - Destin - Fort Walton Beach