Falling Rates, Rising Prices: The Window of Opportunity for Homebuyers

Have you noticed mortgage rates making headlines lately? There’s an important shift happening in the financial world that might actually work in your favor if you’re thinking about buying a home.
The 10-year Treasury yield has fallen to 4.15% — the lowest in over four months. While that might sound like financial jargon, it directly affects your wallet when buying a home. Mortgage rates typically follow Treasury yields, so when these yields drop, mortgage rates usually decrease too.

Why Rates Are Dropping

Here’s what’s pushing mortgage rates down right now:

● Trade issues between the US and other countries are slowing down the economy
● Factories and manufacturers aren’t making as much as they used to
● The Federal Reserve (the nation’s central bank) is expected to cut interest rates to help boost the economy

What this actually means for you in 2025

Let’s break down what this means if you’re house hunting:

Your mortgage could get cheaper

If this trend continues, we’ll likely see mortgage rates drop in the coming months. Even a small decrease can save you thousands over the life of your loan and boost what you can afford.

There’s a “sweet spot” coming

While homes are still in short supply, prices are expected to continue rising. This creates an interesting opportunity for smart buyers. By making a move soon, you could:

1. Lock in a lower rate before everyone else jumps into the market
2. Buy before home prices climb even higher
3. Get ahead of the competition that will show up when rates drop more

Why timing matters right now

Here’s the tricky part, if you wait too long for rates to hit rock bottom, you might end up paying more for the house itself. Any savings on your monthly payment could be wiped out by a higher purchase price.
Think of it this way: your mortgage rate affects how much you pay each month, but the home’s price determines how big your loan is in the first place. Even a small jump in home prices can add thousands to your total cost.

Ready to make a move?

If you’ve been thinking “maybe next year” about buying a home, here’s what you might want to do now:

● Get you pre-approved so you know exactly what you can afford
● Start checking out homes in San Diego neighborhoods you love
● Connect with a realtor to start a conversation about your needs

Every buyer’s situation is different, and these market shifts affect everyone differently. I’m here to help you figure out if this window of opportunity makes sense for you.

Give me a call or shoot me a text — I’d love to talk through what these changes mean for you specifically!