WITH MORTGAGE RATES AT THEIR LOWEST LEVELS IN OVER A YEAR, HOUSING SUPPLY UP 18% FROM LAST YEAR, AND MANY HOMES STILL WAITING FOR OFFERS, IT’S AN EXCELLENT MOMENT FOR BUYERS TO MAKE A MOVE.
NOW IS A GREAT TIME TO BUY
BUYING NOW WILL PROVE A WISE DECISION, AS THE LOWER-RATE ENVIRONMENT IS PROJECTED TO CONTINUE INTO NEXT YEAR, FUELING INCREASED DEMAND AND A MORE COMPETITIVE HOUSING MARKET IN THE COMING SPRING.
Disneyland is known as the “Happiest Place on Earth,” yet it is also known for massive crowds and extremely long lines, especially during the summer and around holidays. Seasoned Disney fans know that there is a magic “window of opportunity” when the park first opens, that special first hour and a half where the lines are short and you can practically stroll onto the top rides. The moment those gates swing open at 8 AM, the pros hustle straight to their favorites. By 9:30, the crowds have poured in, and the lines grow longer by the minute.
Right now, and for the remainder of the year, is a window of opportunity for buyers before the market heats up after the New Year, growing hotter as housing moves towards spring. The current conditions are ideal. Mortgage rates dipped below 6.5% and are at their best level since September of last year. Buyer demand will wane as the year draws to a close. Many homes have been on the market for months without success, and sellers are more willing to negotiate.
Mortgage rates dipped below 6.5% on September 3 and have remained at these lows for 54 consecutive days. Rates are at their lowest levels since September last year. Last year, from August 20 to October 3, rates dropped below 6.5% for 45 consecutive days. It was by far the best mortgage rates of the year after eclipsing 7.5% in April 2024. The favorable rate environment ignited demand (a snapshot of the number of new pending sales over the prior month), jumping from 1,413 pending sales in mid-September to 1,598 in mid-October, a 13% uncharacteristic rise during the Fall Market. Despite rates climbing above 6.5% in early October and surpassing 7% by the end of the month, demand remained elevated through the end of the year. Yet the demand boost disappeared after ringing in 2025, as mortgage rates remained above 7% in January and February.
Mortgage rates rose back to 7% in October 2024 after U.S. economic data came in stronger than expected. The data continued to show economic resilience for the first half of this year as well. Yet the labor market has deteriorated considerably since June, and additional economic headwinds have emerged. As a result, mortgage rates have been slowly declining since, dropping just below 7% at the start of June. They bumped around 6.75% throughout July, and then dropped towards 6.5% in August. They broke below 6.5% at the beginning of September and have never looked back. Unlike last year, these rates are projected to remain at these lower levels through the end of the year and into 2026, with a weaker economy.
Joy Lee
949.290.4903
joy@heyjoylee.com
DRE# 02102122