Cape Coral’s Housing Market: Why Mortgage & Lending is Up as Prices Cool and Drop
Not everything is doom and gloom when it comes to real estate in Cape Coral. Fairview Lending your local Caoe Coral highest rated mortgage company is seeing the loans picking up. For many, the headlines about the national housing market paint a bleak picture. High interest rates have sent home prices tumbling in some areas, and buyer demand has slowed. But here in Cape Coral, the story is very different. At Fairview Lending, we’re seeing a surprising trend: mortgage lending is on the rise in Cape Coral , even as local home prices experience a market correction. So, what’s happening, and why is this a great time for homebuyers in Southwest Florida?
- Mortgage Origination Data: According to ATTOM’s Q1 2025 U.S. Residential Property Mortgage Origination Report, Cape Coral saw a 23.1% quarter-over-quarter increase in mortgage originations. This stands in stark contrast to the national trend, where originations dropped by 14% during the same period.
- Increased Home Purchase Loans: This local increase was largely driven by a significant rise in home purchase loans, which were up 28.5% in Cape Coral, compared to a 20% decline in home purchase loans nationwide.
The Unexpected Rise in Cape Coral Mortgage Originations
While national mortgage applications have decreased, Cape Coral has seen a significant increase. This isn’t just a minor fluctuation; our local market is bucking the national trend, driven by a unique set of circumstances that are creating a sweet spot for buyers.
In recent months, as interest rates have stabilized, many buyers who were previously on the sidelines are now re-entering the market. They’ve adjusted to the current rate environment and are ready to act. The true catalyst, however, is the shift in our local housing supply.
A Buyer’s Market is Emerging in Cape Coral
After a period of intense bidding wars and historically low inventory, the Cape Coral market is finally beginning to correct itself. What does this mean for you?
- Increased Inventory: The number of homes for sale, particularly waterfront properties, has surged. This gives you more options and reduces the intense competition you faced just a year ago.
- Negotiating Power: With more homes on the market, buyers now have leverage. You can negotiate on price, ask for closing cost credits, or request a home warranty, things that were impossible during the peak of the market.
- Softening Home Prices: As inventory rises, median home prices have been adjusting. This creates a more accessible entry point for potential homeowners and makes the dream of owning a home in Cape Coral, FL, a more realistic goal.
This is a powerful combination: stabilized mortgage rates plus falling home prices equals opportunity for you to get a great deal.
How to Capitalize on This Cape Coral Market Shift
This unique market requires an experienced local partner. At Fairview Lending, we understand the specific trends and opportunities in Cape Coral, and we can help you find the right loan to fit your needs.
Don’t let the negative national headlines scare you. The Cape Coral housing market is full of potential, and we can help you navigate it. Whether you’re a first-time homebuyer or looking to find your next home, we can help you find a loan with a great rate. We specialize in all types of home loans, including FHA loans, VA loans, and conventional mortgages.
Ready to find your mortgage solution in Cape Coral?
Contact Fairview Lending today at 239-829-1543 for a personalized consultation. Let’s make your homeownership dream a reality.
Office Located Fairview Lending 1425 Del Prado Blvd S Cape Coral FL 33990