Take Advantage of Falling Rates in Orange County

Learn how dropping mortgage rates impact Orange County real estate.

There's amazing news in the Orange County real estate market: mortgage rates have dropped to a new low for the year at 6.34%. This trend is continuing, so by the time this news reaches you, rates might be even lower.

• Market Trends. Expect a rise in mortgage applications in the next few weeks. If you bought with a 7.5% interest rate or higher, it's a great time to consider refinancing. More importantly, let's focus on what this means for homebuyers and home sellers.

• Impact on Home Sellers and Buyers. In today's Orange County market, home sellers benefit from a heating market. Homebuyers, what does this mean for you? More competition. Nationally, when interest rates drop by 1%, 5 million more buyers typically enter the market. Not all are buying in Orange County, but it increases competition. 

"Right now, we have peak inventory for the year, but competition will increase with these low rates."

• Current Market Snapshot. You have a great window with more options today than likely for the rest of the year. If you're in the market or looking to buy, now is the time. For sellers, expect a hot market in the coming weeks to months.

• Market Statistics. For perspective, Orange County started this year with 1,747 homes active on the market, near an all-time low. Inventory has since climbed to 3,395 active listings, which is decent for buyers but about half the average pre-COVID, which was around 6,500 active listings.

• Future Market Projections. Our inventory is half what it used to be but twice what it was at the start of the year. We expect inventory to dry up as interest rates drop, increasing demand. If you're thinking about selling, it's a great time to start planning and anticipating market trends in the coming months.

Right now, we have peak inventory for the year. However, we expect inventory to trend downward, accelerated by low interest rates. We're at peak available homes for buyers, but competition will increase with these low rates.

With great news in the interest rate world, if you have questions on navigating this market strategically—whether buying or selling—I'd love to chat. Give me a call at (949) 835-4713 or send a message at simon@sellwiththerightguy.com to schedule a conversation.