Market Overview
As we move past March, the Orange County real estate market continues to
show resilience amid fluctuating mortgage rates. Demand persists, keeping home
values stable. However, notable changes in the broader financial landscape are
starting to shake things up.
Rates have improved with the dramatic announcement of tariffs across all
imported goods. The stock market does not like uncertainty, nor the specter of
rising costs for all imports, and has spoken. This resulted in a flight to
security, which means bond yields dropped as demand increased. As a result,
mortgage rates have come down, with the average 30-year fixed rate currently at
6.6%.
What Does This Mean?
If you’ve been waiting for the right time to make a move, now might be it.
Whether you're buying for the first time, moving up or down, or considering a
refinance, it's time to start the process. We are seeing more inventory
entering the market, but multiple offers are still common on well-priced homes.
Insurance Challenges
We continue to experience issues with home insurance, particularly for
condominiums. Master HOA policies are struggling with wildfire coverage and
have lost it altogether in some locations. Be cautious with condominium
ownership and carefully review all HOA documentation, including insurance
coverages and reserves.
CalFire released a new wildfire hazard map. Your home may be impacted. You can check it out here: https://osfm.fire.ca.gov/what-we-do/community-wildfire-preparedness-and-mitigation/fire-hazard-severity-zones?itid=lk_inline_enhanced-template These areas will likely see further insurance premium increases.
VA Loan & Interest-Only Loan Insights
For veterans and active military, VA loans continue to offer significant
advantages, including competitive rates and no down payment requirements.
Additionally, interest-only loans remain an option for buyers seeking lower
initial payments, particularly in high-cost areas like Orange County.
Looking Ahead
With economic volatility and shifting policy decisions, buyers and sellers
should keep an eye on key indicators such as job growth, inflation, and lending
guidelines. The Fed is currently holding firm on further rate drops, but that
could change. If you're considering making a move, now may be the perfect time
to lock in a favorable rate.
For personalized guidance, feel free to reach out!
