Palm Springs, CA

Homebuyers looking to buy in Greater Palm Springs got a small gift this past week as mortgage rates dipped below 7% for the first time in more than a month.

The drop in mortgage rates, with the 30-year loan now averaging 6.94% this past week, might spur more activity among buyers. According to Jessica Lautz, deputy chief economist at the National Association of REALTORS®, rates below 7% enhance buyer affordability. In addition, recent home sales reports indicate a rise in new listings especially in the Coachella Valley where inventory has risen.

According to Flex MLS at the time this article was written on Sunday May 26, 2024, there are 2626 active listings for sale this year this month versus 2251 last year this time this month. Sam Khater adds that the increased supply, combined with the recent decline in rates, bodes well for the housing market.

Many homebuyers are waiting on the sidelines for mortgage rates to drop before they jump in and buy their Coachella Valley home. However, industry experts suggest that if you love a home now and are ready to purchase, buying it now and “dating” the current mortgage rate could be a good decision with an eye on refinancing your mortgage down the road when rates drop more significantly.

The Author, Eric Gray, is a REALTOR®️ with Better Homes and Gardens Desert Lifestyle Properties, CA DRE 02225444.