Puerto Rico Real Estate Market Report — October 2026

Last month’s report said mortgage rates were flat and that nobody was forecasting a move below 6% this year. That second half held up. The first half did not: rates did not stay flat, they climbed. The 30-year fixed-rate mortgage averaged 7.03% on September 24, 2026, the highest reading in this report’s recent coverage and 0.37 points above the 6.66% we cited a month ago (Freddie Mac Primary Mortgage Market Survey, September 24, 2026).

That changes the financing math for every buyer on the island. Below we cover October’s picture: rates, prices, inventory and days on market, the Act 60 deadline, and the assistance programs. Where a figure is old, we say so.

1. Financing: Rates Moved Up, Not Sideways

• The 30-year fixed-rate mortgage averaged 6.71% (September 3), 6.76% (September 10), 6.95% (September 17), and 7.03% (September 24) — four straight weekly increases (Freddie Mac PMMS, September 2026).
• A year earlier, on the same survey date, the rate was 6.30%. The 15-year fixed averaged 6.42% on September 24, up from 6.26% the prior week (Freddie Mac PMMS, September 24, 2026).
• For context, the 30-year averaged 6.00% on March 5, 2026, near its lowest level since 2022, and the 2026 year-to-date average through September 24 was 6.41% (Freddie Mac PMMS, March 5 and September 24, 2026). September erased most of that progress.
• Illustration: on a $300,000 loan, principal and interest at 6.66% is about $1,928 per month; at 7.03% it is about $2,002 — roughly $74 more per month, or about $890 per year (MoveIQ calculation, 30-year fixed, before taxes and insurance).
• Data caveat: the Fannie Mae (June 2026) and MBA forecasts we cited last month, near 6.4% to 6.5% for year-end, predate this move. Treat them as outdated until they are revised. Freddie Mac publishes a new reading every Thursday; check the current week before quoting a rate to a client.

What this means for you: a one-point rate move matters more than a few percent of price movement. Get a fresh pre-approval, ask your lender about rate locks and buydowns, and stop budgeting off a 6.5% rate that no longer exists.

2. Prices: Still Reading the Q2 Pullback

• Puerto Rico’s house price index was 264.64 points in Q2 2026, down from the all-time high of 272.77 in Q1 2026 (Statistical Institute of Puerto Rico via Trading Economics, Q2 2026). A Q3 2026 reading has not been published yet, so this is still the latest number — now about three months old.
• The index is not seasonally adjusted and is revised after release. One down quarter after a record is a normalization signal, not a trend.
• The FHFA’s seasonally adjusted purchase-only index for Puerto Rico rose 14.95% year over year in Q4 2025, versus 2.55% in Q3 2025 and 12.98% in Q2 2025 (FHFA, via Global Property Guide). Those swings show how volatile a small-island index can be. We could not verify FHFA’s Puerto Rico figure for Q2 2026, so we are not quoting one.
• Nationally, FHFA reported U.S. house prices up 2.1% year over year in Q2 2026 (FHFA House Price Index Report, 2026 Q2).
• On the transaction side, Realtor.com-based reporting shows a median sale price near $395,000 and median rent near $1,900 (Realtor.com-based reporting, as of September 2026; Q1 2026 MLS-based median was $385,000, up 6.2% year over year).

What this means for you: higher rates cut buying power even if prices hold flat. Price off recent closed comparables in your urbanización, not off a headline index.

3. Inventory and Days on Market

• Active listings island-wide are about 4,600 (Realtor.com-based reporting, September 2026), up from roughly 4,200 in Q1 2026, which was down 12% year over year (Stellar MLS-based reporting). Supply is rebuilding slowly.
• Stellar MLS-based reporting puts months of supply at roughly seven to nine months depending on the period measured — a balanced-to-buyer-leaning range island-wide. This is a rough range, not a precise current figure.
• Average days on market island-wide was 68 days in Q1 2026 (Stellar MLS-based reporting). That is now two quarters old; we did not find a newer island-wide figure.
• Submarkets (most recent figures available, not refreshed this month): Condado and Ocean Park about 52 days with 89 active listings; Palmas del Mar about 61 days with 134 active listings; Guaynabo and Santurce about 58 days; Dorado Beach about 28 days; west coast (Rincón, Isabela) 55 to 70 days.
• Below $500,000 the market has moved toward balance. Above $1 million (Dorado, Condado, select Guaynabo communities) supply stays tight and appreciation has run roughly 6% to 14% year over year (InvEstate PR, 2026).

What this means for you: with rates at 7%, the buyer pool for mid-priced homes is thinner. Sellers below $500,000 should expect more negotiation and price carefully from day one. Cash-heavy luxury buyers are less rate-sensitive.

4. The Act 60 Deadline: Three Months Left

• Act 38-2026, signed March 10, 2026, extends the Individual Resident Investor program from 2035 to December 31, 2055 (DLA Piper, March 2026).
• Applications filed on or before December 31, 2026 keep the prior rules: generally 0% on interest, dividends, and post-residency capital gains through 2035. Applications filed on or after January 1, 2027 generally pay 4% on those items, and 5% on certain pre-residency long-term gains.
• New applicants must show they were not Puerto Rico residents in the six years before relocating, and the required primary residence must be owned directly or through a trust.
• The deadline is tied to the date the decree application is filed, not the closing date of a home purchase. Existing decree holders keep their terms and may optionally modify them.
• Some buyers may move earlier because of this deadline. Higher rates could slow others, so we are watching both effects.

What this means for you: if you are a relocating buyer, talk to a Puerto Rico tax attorney or CPA now about timing. If you are a seller, do not price to Act 60 demand unless your property truly fits the relocation-buyer profile.

5. Programs: Pronto pa’ tu Casa Gets More Money

• The CDBG-DR Homebuyer Assistance Program closed to new applications on December 31, 2025. It is not an active option.
• Pronto pa’ tu Casa, run by the Puerto Rico Housing Finance Authority (AFV) with CDBG-MIT funds, has been available since January 2026. It offers up to $60,000 toward down payment, closing costs, and reduced monthly payments for low-to-moderate-income first-time buyers (AFV; Plateapr, 2026).
• Funding: $100 million originally, plus an additional $80 million announced in September 2026, with reported reach of roughly 2,600 families in total (El Nuevo Día, September 6, 2026). As of June 8, 2026, 297 families had benefited with $13.8 million disbursed (AFV, as reported); later press accounts cite about 1,000 buyers helped and about 1,300 in process. These later figures are from press reports and should be confirmed with AFV.
• 2026 HUD income limits (effective June 2026): $55,450 for one person, $63,400 for two, $71,300 for three, $79,200 for four, up to $104,550 for eight (HUD, via El Nuevo Día and Plateapr).
• You request it through a participating financial institution alongside your mortgage application.

What this means for you: with higher rates, down payment and payment assistance matter more. If your household income is near these limits, ask a participating lender about Pronto pa’ tu Casa before you assume you need all the cash yourself.

What This Means for You

• Buyers: the rate jump adds roughly $74 per month on a $300,000 loan versus a month ago. Get re-qualified, lock when you find the right house, and use Pronto pa’ tu Casa if you are eligible. Inventory below $500,000 still gives you negotiating room.
• Sellers: expect a thinner pool of rate-sensitive buyers. Price from closed comps, prepare the property, and clear title issues before listing. The Act 60 filing deadline of December 31 only matters if your property fits relocation buyers.
• Investors: higher financing costs reduce leveraged returns. Rental yield figures from Q1 2026 have not been refreshed in this report, so re-underwrite with today’s rate and a conservative price assumption.

Want to know how these numbers apply to your specific property, neighborhood, or investment goals? Reach out to Carrion Real Estate for a data-backed analysis of your situation.

*The data, statistics, and market trends presented in this MoveIQ report are compiled from public sources including the FHFA House Price Index, the Statistical Institute of Puerto Rico, Freddie Mac, MLS-based market reporting, and Puerto Rico government agencies, as of the dates cited. Figures are for educational purposes, may be revised, and should be validated against current MLS data before being used for a pricing or purchase decision. This report is not an appraisal, and is not tax, legal, or investment advice.

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