If you’re diving into the real estate market in Walnut Creek, or anywhere in the East Bay, California, one of the biggest questions on buyers’ minds right now is: When will interest rates come down? Unfortunately, the honest answer is—it’s complicated, and nobody really knows for sure.

What the Federal Reserve Is Saying

The Federal Reserve, which plays a key role in influencing mortgage interest rates, has hinted several times that rates might start to drop in 2024. However, those rate cuts haven’t materialized yet. Recently, Fed officials suggested that any meaningful decrease in rates may not happen until later in the year.

Why the delay? The main culprit is inflation. Each new inflation report has shown numbers that are still higher than the Fed wants, which means they’re hesitant to lower rates too soon. Remember, after COVID, the federal government injected a lot of money into the economy to help recovery, and now we’re feeling some of those long-term effects.

What Does This Mean for Walnut Creek Buyers?

If you’re sitting on the sidelines waiting for interest rates to return to the historic lows in the 3% range, you may be waiting a while. The reality is rates aren’t expected to fall that low anytime soon.

My advice? Consider buying now, even with higher rates, and refinance later when rates drop. Here’s why:

• The housing market in Walnut Creek and the East Bay has remained resilient despite higher rates.

• Limited inventory keeps prices stable, so the market hasn’t crashed.

• When interest rates eventually do come down, expect a surge of new buyers entering the market.

• More buyers mean home prices are likely to rise again.

Why Act Now?

Waiting for rates to fall might feel like a smart move, but it could cost you in the long run. Buying now locks in your place in a competitive market, and refinancing later can help you save money when rates drop.

If you want to explore your home financing options or have any questions about the California real estate market, especially here in Walnut Creek, feel free to reach out. We’re here to help guide you every step of the way.