Lisa Mailhot | August 5, 2025
Buyers
Disclaimer: This blog is for informational purposes only and may reference third-party sources, including quotes or data used verbatim with proper credit. All efforts are made to ensure originality and avoid plagiarism. Readers should verify details independently and consult a licensed professional before making real estate decisions.
Mortgage rates have taken a welcome dip, landing at a level not seen in about ten months. For buyers, that means a stronger budget and greater flexibility. For sellers, it could translate into a wave of renewed interest as affordability improves across the market.
With the average 30-year fixed rate now around 6.57%, buyers with a set monthly budget can suddenly aim higher. On a $3,000 monthly housing budget, this change can add roughly $20,000 in purchasing power compared to just a few months ago. That’s enough to open doors—literally—to homes that were previously just out of reach.
For the typical U.S. home, the monthly payment has dropped by more than $100 since mid-May. In a high-cost area like Orange County, even a small rate change can make a noticeable difference in what buyers can afford.
This recent decline followed a weaker-than-expected jobs report, which hinted that the economy might be cooling slightly. That shift in economic indicators has fueled speculation that the Federal Reserve could reduce its key interest rate in the near future—something that often pulls mortgage rates down with it.
Economists suggest that the combination of lower rates and an increased number of homes for sale has created an unusually favorable environment for buyers as we head toward the end of summer.
Across the country, more listings have been hitting the market, giving buyers a broader selection and more leverage during negotiations. While prices in Orange County haven’t dropped dramatically, other regions have already seen small declines.
It’s worth noting that new listings are starting to taper off again, which means this window of opportunity may be temporary. Buyers who are ready to act now could benefit most from the current balance of supply, demand, and interest rates.
Take advantage of lower borrowing costs to expand your search or secure a better location.
Use the increase in inventory to negotiate on price, repairs, or closing credits.
Get pre-approved to move quickly—well-prepared offers stand out.
With motivated buyers re-entering the market, pricing competitively could spark multiple offers.
Consider offering incentives, such as covering closing costs, to capture buyer attention.
Selling before rates rise again can help you reach a broader pool of buyers.
Mortgage rates at their lowest level in nearly a year have opened a rare moment where both buyers and sellers can benefit. Buyers have more purchasing power, and sellers have a motivated pool of house-hunters eager to act before rates change again. If you’re thinking about making a move in Orange County, reach out to me at Whitestone Real Estate—let’s make sure you take full advantage of these conditions.
Reference: Anderson, D. (2025, August 4). Mortgage rates drop to lowest level in 10 months, upping purchasing power in a buyer-friendly market. Redfin.
Mortgage rates have fallen to their lowest point in nearly a year, giving homebuyers more room in their budgets and creating fresh opportunities for sellers. Discover … Read more
Discover the latest housing market trends, including significant home price drops in major U.S. metros like West Palm Beach and Austin. Learn what these changes mean f… Read more
Home values are now falling annually in four major U.S. cities, signaling a shift in the national housing market. Learn which metros are affected, why this matters, an… Read more
Despite economic uncertainty, the luxury real estate market continues to thrive in 2025. High-end buyers are capitalizing on cash transactions, turnkey properties, and… Read more
Southern California’s housing market is cooling in mid-2025, with rising inventory and more price cuts across Newport Beach and Orange County. Buyers are gaining contr… Read more
Explore the Southern California real estate market in Q2 2025 with insights on inventory trends, price changes, and buyer behavior in cities like Corona, Costa Mesa, D… Read more
As mortgage rates drop to their lowest level in months, homebuyers are gaining more purchasing power. Discover how this shift is benefiting house hunters and what it m… Read more
California is tackling its housing crisis by rolling back the California Environmental Quality Act (CEQA), long criticized for stalling new developments. This game-cha… Read more
The housing market is experiencing some noticeable changes, from fewer new listings to a drop in buyer activity. In this blog, we dive into the latest market shifts, w… Read more
Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most