October 2026 tested the luxury market with higher mortgage rates.

What Smith & Associates Reported

In Tampa Luxury Market vs. High Rates, Smith & Associates reported:

• The average 30-year fixed rate at 7.40% in mid-October, up from about 6.7% in early September, per Freddie Mac
• Tampa’s luxury segment holding up, supported by cash buyers, larger down payments and limited supply
• About four months of supply for homes priced $1.5 million to $2 million, compared with about ten months above $4 million, based on a Stellar MLS analysis of July data

Waterstone’s Take

Higher rates matter less to buyers paying cash or putting significant money down, and those are the buyers most active in South Tampa’s luxury market. For them, the bigger question is finding the right home on the right lot.

Market data and reporting: Smith & Associates Real Estate, citing Freddie Mac and Stellar MLS. Waterstone’s commentary is our own.

Keep Reading

See all five months together in Michael Carrier on South Tampa’s Luxury Market, or take the 3D tour of 308 Caspian St, Waterstone’s award-winning home on Davis Islands.