Good News For Southern California Home Buyers!
Mortgage rates have been a hot topic in the housing market, especially for those keeping an eye on affordability. If you’ve been waiting for rates to drop before making a move, your patience may be paying off.
Mortgage Rates Decline in Recent Weeks
There’s great news for prospective homebuyers in Riverside and San Bernardino counties. Following the latest economic reports, including those on inflation and unemployment, and recent statements from the Federal Reserve, mortgage rates have begun to decrease. According to Freddie Mac, they’re now at a level we haven’t seen since February.
While it might be tempting to wait and see if rates drop even further, it’s important to keep things in perspective. The historically low rates from the pandemic era are unlikely to return. As Greg McBride, Chief Financial Analyst at Bankrate, points out, “Lower doesn’t mean we’re going back to 3% mortgage rates. . . the best we may hope for over the next year is 5.5 to 6%.”
With this recent decrease, you have a valuable opportunity to enter the market before competition heats up.
How Lower Rates Impact Demand in the Inland Empire
If you wait too long, you may face increased competition from other buyers who are also taking advantage of lower rates. In real estate, there’s typically a direct relationship between mortgage rates and buyer demand. When rates drop, more buyers tend to enter the market, which can drive up home prices and potentially lead to bidding wars—especially in popular areas like Riverside, Rancho Cucamonga, and Temecula.
As highlighted in a recent article from Bankrate, “If you’re ready to buy, now might be the time to strike. Home prices have been rising primarily because of a longstanding shortage of homes for sale. That’s unlikely to change, and if mortgage rates do fall below 6%, it’s possible buyers would enter the market en masse, further pushing up prices and resurrecting bidding wars.”
Bottom Line for Inland Empire Buyers
If you’ve been on the sidelines, now might be the perfect time to make your move. Mortgage rates have hit their lowest point in months, offering a prime opportunity to buy before other buyers flood the market.
Ready to get started? Reach out today, and let’s explore your options in this rapidly changing market.
