By Jim Carchidi
After months of speculation, the Federal Reserve announced a quarter-point interest rate cut on September 17. The move was intended to stimulate economic growth in the shadow of inflation and a weakening labor market, but how has it impacted first-time buyers in the Central Florida real estate market?
According to Matek Mortgage founder and lead advisor Greg Matthews, mortgage applications rose an average of 39% nationally in the days after the announcement. He said the competition will be good for the local market after months of rising inventory.
“You don’t want more sellers than buyers," he said, "so now we’re gong to see buyers getting back in the market.”
The monthly report from Orlando Regional Realtor Association marked a 15.6% rise in inventory between August of 2024 and August 2025 with new listings falling 13%. The average home price was up 4.2% but the median home price dropped 0.4%.
While the reset from the Covid-era housing market boom has increased opportunities for local first-time buyers, Matthews believes it won’t last long as inventory in several Florida cities remains low.
“I’ve had so many people renting in Miami and Ft Lauderdale over the last few years,” he said. “As they look to purchase, they cannot afford anything, so they’re migrating to Orlando.” And as the rate of buyers moving from northern and western states may have slowed, it hasn’t stopped.
Another factor affecting the Central Florida market is ongoing interest in the rental business. “So many young people are looking to take on multiple mortgages and rent one property to pay off another. Or buy a duplex to live in one unit and rent out another for income.”
Despite the challenges, first-time home buyers have options. Matthews offers three pieces of advice for anyone taking the first step toward home ownership.
Don’t sweat the down payment
Matthews’ advice for first-time buyers is to start by abandoning the idea that buying a home requires a big down payment.
“You can purchase a home with as little as 3% to 3.5% down,” he said, adding that many down payment assistance programs can cover the entire down payment. “We’re getting some people into a home with their downpayment covered and 90% of the closing costs covered by the seller.”
Be flexible
Location has always been the primary factor in real estate affordability and expanding your area of interest may reap big benefits.
“You see places like Apopka, where there’s 20 builders in a five-square-mile radius. That creates more affordability because there’s more competition from other builders. But if you try to buy in, say, Winter Garden or Horizon West, there’s more competition from other buyers.”
Rate buy-downs, paid closing costs and other incentives from motivated builders can dramatically improve the financial terms for first-time buyer.
Credit is king
Cash may be king in the financial sector but when applying for a mortgage loan, credit matters most. Matthews’ final piece of advice is one that should be heeded before house hunting even begins.
"People start their credit history at a young age and some think, 'well, my credit may not be good but I pay my rent on time,' but that's not enough. You have to manage all of your payments maintain a good record to qualify for many of these mortgage programs."
Matthews says it's not impossible to buy a home with not-so-great credit, but it will make a big difference.
The Orlando Real is sponsored by the Pozek Group. If you’re thinking of buying or selling a home in Orlando, reach out and we would love to help!
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