Lower rates sound great — but the full story is more complicated.

Fun in the Sun Will falling mortgage rates actually help buyers? If you're waiting for mortgage rates to drop before buying, you're not alone. But here's the real question: Will cheaper money actually fix what's broken in California's housing market? The short answer? Not exactly. Historically, lower rates can help — but they often show up when the economy is under pressure. Since 1990, the biggest rate cuts averaged a drop from 6.5% to 5.5%, and yes, home sales increased by about 5%. But prices didn't always follow. In fact, prices rose more during times of rising rates (7% annually) than during major rate drops (4% annually). So what gives? It comes down to demand. Even when borrowing gets cheaper, it only translates into more buying power if consumers are confident — and employed. When rates dropped the most, California's job market was usually soft. On the flip side, when rates were rising, so were wages, hiring, and buyer confidence. Here's what's interesting now: demand is still strong, especially in San Diego. We're seeing multiple-offer situations on well-priced listings, and while rates may be a bit of a headwind, lack of inventory is keeping prices high. Buyers still want in — and when they can't find options, that demand builds up. Which brings me to this: If you're waiting for rates to drop before buying, consider this instead — You can always refinance later. If prices rise in the meantime — which they likely will if demand remains high and inventory stays low — you could end up paying more overall. But if you buy now at today's price and refinance when rates dip, you lock in equity and a better loan. Real estate is rarely about timing the bottom. It's about knowing your goals and making moves that align with them. And in this market, that often means getting ahead of the next surge. If you're wondering what the right move is for you, let's sit down and map it out. Whether you're buying your first home, upgrading, or investing, I've helped clients navigate every type of market — and I'd love to help you do the same. Ready to make a move? Give me a call today. My clients always come first, my 5 star reviews tell the story. Read My Reviews zach.arrington@compass.com marketingcenter-- zach.arrington@compass.com here