Written by on April 8, 2026
The current mortgage market is experiencing a bit of rate volatility that is existing globally, according to local real estate experts.
The bigger story really is the bit of volatility that is currently existing. A loan that may look like it may lock in at 6.5% can quickly turn into a slightly higher rate closer to 7%, and that movement is being driven in part by broader geopolitical issues, said Sandra Ferrera, a partner at Day Pitney and a mortgage law professor at the University of Miami.
“However, we are seeing some positive outlook. I think that the federal government does seem to appear more comfortable with inflation, which is a positive signal, but I think rates are still reacting a little bit to global issues that are happening, and not just domestic policy,” Ms. Ferrera said. “It’s no longer just a rate-driven market; it’s a risk-driven one.”
From a legal and transactional standpoint, volatility is showing up directly in deals, and all involved are spending more time negotiating contingencies, extension rights, and rate law and potential protections, because even small shifts in rates can impact whether a transaction closes, she said.
According to the Miami Association of Realtors’ March insight report, mortgage rates are forecasted to increase due to geopolitical events. Mortgage rates, which were above 7% at the start of 2025, have trended down in recent months, but they might be on the rise again because of the Iran war. Inventory of single-family homes increased 3.31% year-over-year for the month of February from 5,140 active listings to 5,310, the report said.
“Lenders are underwriting with a strong focus on risk, so they’re looking more at debt-to-income ratios, income verification, and overall borrower stability,” Ms. Ferrera explained. “From a legal standpoint, much of that is driven by compliance and long-term loan performance, and lenders are structuring their loans to be able to withstand more scrutiny than in the past.”
The market is also seeing a shift in borrowers’ behavior because many borrowers are anchored to the prior loan rates that we had, so many homeowners are tied to their lower first mortgage rates, she continued.
“When they’re looking to get liquidity, I think you’re going to see more homeowners looking at getting equity lines or second mortgages to try and get liquidity, rather than having to refinance on the lower interest rates from 4% that we had in the past, she said.
“So, I think while you do have strong borrowers that are still getting a boost and have access to credit, there’s still a little bit more challenges for middle-income or self-employed borrowers that have to do a little bit more of the documentation-driven paperwork that lenders are requiring.”
