September Housing Market Update: Massachusetts & Florida Real Estate Trends, Mortgage Rates, and Homeowner Tips”
Massachusetts Real Estate Market (MA)
What’s Going On
Inventory has been inching up across Massachusetts (especially in single-family homes and condos), giving buyers more options. Sellers are seeing more days on market unless homes are very well priced.
Prices overall remain strong. Some parts of the state are registering year-over-year price gains, especially in desirable or high-amenity towns. For example, in South Shore MA, towns like Hingham, Cohasset, Duxbury, Norwell are showing high median prices (often well over $1 million in luxury segments).
Central Massachusetts (Worcester County etc.) remains a seller’s market: not many homes for sale, prices holding up, and well-priced homes moving quickly.
However, affordability remains a challenge. Even though inventory is creeping up, mortgage rates and high home prices still limit how many buyers can participate.
Outlook
The fall market (Sept & Oct) in MA looks like it could be more active than usual relative to recent years. Homes priced right are likely to get attention.
Luxury and highly desirable towns will likely continue to outperform, while more moderately priced or “middling” homes may see more negotiation needed.
Sellers who price aggressively may see faster sales; buyers may wait for slightly better mortgage rates or dip in competition to make offers.
Florida Real Estate Market (FL)
What’s Going On
The Florida market is showing some cooling relative to its fast growth in prior years:
Median home prices in August 2025 were about $403,000, which is down ~0.17% compared to the prior year.
Number of homes sold is down ~7.7% year over year, but supply is up: more homes for sale, giving buyers more options.
Days on market have increased: homes are taking longer to sell (79 days on average) than last year.
In Central Florida, home sales are down (~13% year-over-year) as of mid-September, and there is widespread hope that a Fed rate cut will spark more activity among buyers and lenders.
Florida Realtors report that mortgage rates are “holding steady” to start September, with the direction of rates in the latter half hinging largely on Fed policy and broader economic indicators.
Outlook
Because inventory is rising, buyers may find more leverage, especially in less sought-after locations or homes that aren’t ultra high-end.
Price growth is likely to be flat to modest for the rest of 2025, with possible small declines in some markets if mortgage rates or costs (insurance, taxes) continue to push affordability pressures.
Areas with strong amenities, good schools, lower insurance costs, or desirable coastal/inland balance will continue to attract demand.
Mortgage Rates: Current & What’s Ahead
Current Status
The average 30-year fixed mortgage rate in the U.S. has dropped into the mid-6% range. Recent readings put it around 6.35%-6.39%, the lowest since October 2024.
15-year fixed rates are lower, reportedly in the mid-5% range (≈5.47% in some reports) for purchase loans.
Adjustable rate mortgages (e.g. 5/1 ARMs) have seen some decline also, making them somewhat more attractive for those expecting to move or refinance before big rate adjustments.Drivers & Fed Policy
Much of the rate drop is being driven by falling yields on the 10-year Treasury, which often set the baseline for fixed mortgage pricing.
The Federal Reserve is expected to cut its benchmark interest rate at its meeting around Sept. 17, 2025 (by about 25 basis points per many forecasts), which could slightly ease borrowing costs further.
But inflation still remains above the Fed’s 2% target, and job market data is mixed—so the Fed will likely move cautiously.
What’s Ahead
If the Fed does cut rates as expected, mortgage rates may drift down further, especially for shorter-term fixed and adjustable mortgages.
But large drops below ~6% for 30-year fixed seem unlikely in the near term unless inflation and economic indicators improve significantly.
Rates could remain volatile: they may rise if inflation surprises to the upside or global events push bond yields higher.
Implications for MA & FL Markets
In MA, modest declines or stabilizations in mortgage rates could give more buyers some breathing room. Because home prices are high, even a small drop in rate can improve monthly payment affordability meaningfully. Buyers who have been waiting may be more active. Sellers who priced too high this summer may feel pressure.
In Florida, the combination of rising inventory + slightly cooling prices + potential rate drops could shift some neighborhoods toward a more balanced market. Buyers will benefit, particularly in mid-price ranges. Sellers may need to offer more incentives (closing help, repairs, etc.) in some submarkets.
4 Mortgage & Homeowner Tips
Here are practical tips to make the most of the current environment:
Lock rates at the right time
If you find a favorable mortgage offer (especially a 30-year or 5/1 ARM) and expect rates might drift up, consider locking in that rate. Some lenders also offer “float-down” options in case rates dip further.Shop beyond headline rates
Always compare effective interest rates including points, fees, closing costs, and all lender charges. The lowest posted rate doesn’t always mean lowest cost over time.Evaluate ARMs carefully
Adjustable-rate mortgages can offer lower initial rates, but be clear on when rate adjustments occur and what caps exist. If you plan to move or refinance within a few years, an ARM may make sense; if you’ll stay long term, the fixed-rate remains safer.Budget for the hidden costs
Especially in Florida, rising insurance and property tax costs can eat significantly into monthly homeownership costs. Factor inspections, maintenance, and unexpected expenses into your budget. Sellers may need to make repairs; buyers should include those in offers. Also in MA, in luxury or high-tax towns, those carrying costs are real.
Bottom Line
Summer has given way to a fall market that looks more balanced than recent years. Mortgage rates are easing just a tad, inventory is up in many places, and buyers are gaining more options. But affordability remains a tightrope—especially in Massachusetts, where high prices persist, and in parts of Florida where carrying costs (insurance, taxes) are adding up.
If you’re considering buying, selling, refinancing, or simply timing a move, the next few weeks are worth watching: rates, Fed policy, and local supply/demand shifts could all tip the scale.