For months, buyers and sellers alike have been navigating the headwinds of higher borrowing costs. Every conversation seemed to circle back to interest rates: When will they come down? How much higher can they really go? Finally, the tide is shifting. Mortgage rates have begun to ease, and with that comes a fresh wave of opportunity.
So, what’s really happening? Over the past few weeks, long-term bond yields have trended lower, sparked by expectations that the Federal Reserve could soon cut rates and growing concerns about a slowing economy. Mortgage rates tend to follow those yields—and as a result, the average 30-year fixed rate recently dropped to around 6.29%, the lowest we’ve seen since early 2024.
Here’s why that matters for you:
For buyers, this is about purchasing power. Lower rates stretch your budget further, unlocking homes that may have felt out of reach just months ago. Even a small dip can mean hundreds saved each month—or the ability to upgrade without breaking stride.
For sellers, this shift brings energy back into the market. Improved affordability invites more buyers to the table, which means stronger demand for well-priced homes. If you’ve been hesitating to list, this could be the window where buyers start leaning back in.
For homeowners, it may be time to revisit your mortgage. If you purchased or refinanced during the peak of higher rates, a refinance could lighten your financial load or free up cash for other goals—whether that’s building wealth, making upgrades, or simply creating breathing room.
Of course, the story doesn’t stop here. The Federal Reserve’s upcoming FOMC meeting will set the tone for the rest of 2025. While the Fed doesn’t directly control mortgage rates, its policy decisions ripple through the bond market and, ultimately, into housing. Whether you’re buying, selling, or simply planning ahead, what happens in the coming weeks will shape the moves of buyers and sellers across Los Angeles and the Bay Area.
Here’s the takeaway: the market is in motion, and preparation is power. Opportunities are opening, but they belong to those ready to act with clarity and strategy.
If you’re wondering how these shifts might impact your next chapter—let’s talk. Together, we can turn today’s changes into tomorrow’s advantage.
