While mortgage interest rates have risen sharply over the last year, they have already begun to come down on the mainland. A 30-year fixed-rate mortgage with a conforming loan peaked at 7.14% in November 2022 and has dropped to 6.2% in February 2023. We expect this trend to continue and to see interest rates around 5% before the end of the year on the mainland. Puerto Rico rates typically trend a few months behind and about 1 percentage point higher.
While the market has cooled, the good news is that new buyers are still entering the market. Most of our clients are new to Puerto Rico and have a 6–12-month window to purchase as home. They are taking their time to learn the area and if needed to shop for a loan.
With higher rates, more inventory, and relatively fewer buyers, it feels… normal.
