If you’ve been keeping an eye on the real estate market lately, you’ve likely noticed a recurring theme: mortgage rates are holding steady in the mid- to upper-6% range. For many buyers, this new reality is a far cry from the historically low rates we saw during the pandemic. But here’s the surprising part—people are adapting.
The 30-year fixed-rate mortgage has been hovering around 6.72% according to Freddie Mac, and buyers seem to be finding ways to work within this new framework. It’s not just about resigning themselves to higher rates; it’s about recalibrating expectations and focusing on what’s possible.
I’ve seen this shift firsthand in Ventura County. Buyers who may have initially felt discouraged by rising rates are now taking a closer look at their options. They’re prioritizing value, looking at creative financing solutions, and honing in on what’s most important to them in a home. It’s not about settling—it’s about adapting to the landscape with a sense of purpose.
Interestingly, existing-home sales have seen an uptick, with a 6% increase year-over-year in November. According to Lawrence Yun, chief economist for the National Association of REALTORS®, this momentum is being driven by more stable mortgage rates, increased inventory, and robust job creation. It’s a reminder that even in a challenging market, there’s opportunity for those who stay engaged and flexible.
Some buyers are adjusting their expectations, moving away from the hope of 3% to 4% mortgage rates that felt like the norm during the height of the pandemic. But when you zoom out and look at the bigger picture, today’s rates are still below the 50-year historical average of 7.7%. While it may not feel like a bargain compared to recent years, it’s worth remembering that perspective plays a powerful role in decision-making.
One question I often get from clients is about the Federal Reserve’s rate cuts and why they don’t seem to lower mortgage rates. The answer lies in how mortgage rates are determined—they’re more closely tied to Treasury yields than to the Fed’s benchmark interest rate. This disconnect can feel frustrating, but it also highlights why it’s so important to stay informed and work with an experienced real estate professional who can help you navigate these nuances.
So, what’s next? Economists are predicting mortgage rates could average around 6% in 2025, but much depends on broader economic factors like inflation and the federal deficit. For now, it’s about focusing on what you can control: getting pre-approved, exploring financing options, and staying ready to act when the right property comes along.
If you’re thinking about buying, this isn’t a market to sit out on. Even with higher rates, there are ways to make it work. Let’s talk about how we can turn today’s challenges into opportunities and find the home that’s right for you. It’s all about seeing the possibilities and moving forward with confidence.
