How Falling Mortgage Rates Are Changing the Game for California Homebuyers
After months of uncertainty, mortgage rates are finally trending down, and that shift is creating new opportunities for California homebuyers. If you’ve been holding back on your home search, now may be the time to re-enter the market.
Mortgage Rates Are at a 10-Month Low
As of August 2025, the average 30-year fixed mortgage rate in California is around 6.57 percent, the lowest level since October 2024. That drop may not sound dramatic, but even a small change in rates can have a big impact on what buyers can afford.
Example: On a $700,000 loan, the difference between a 6.57 percent rate and a 7 percent rate is more than $100 per month. Over the life of a loan, that adds up to thousands in savings.
Why This Matters for California Buyers
Increased Buying Power
Lower rates stretch your budget further. A home that may have been out of reach earlier this year could now fit comfortably within your payment range.Better Negotiation Leverage
In areas like Simi Valley, home prices have softened compared to last year, and homes are staying on the market longer. Combine that with lower rates, and buyers are in one of the strongest positions they’ve seen in years.Refinance Potential Later
Even if rates drop further in 2026, buying now allows you to secure a home while inventory is higher and competition is lighter. You always have the option to refinance later if rates improve.
The Local Picture: Simi Valley and Ventura County
Median home price in Simi Valley: about $810,000, down nearly 8 percent year-over-year.
Days on market: 58 days on average, giving buyers more time and less pressure.
Inventory: Rising, with more homes being listed heading into fall.
This combination — lower rates and cooling prices — makes the current market a rare window of opportunity for local buyers.
What Buyers Should Do Now
Get Pre-Approved: A pre-approval locks in today’s rate and shows sellers you’re serious.
Run the Numbers: Ask your lender how much more home you can afford with current rates.
Move Quickly: The market can shift again; taking advantage of today’s conditions is key.
Bottom Line
Falling mortgage rates are reshaping the California housing market, giving buyers a unique chance to maximize affordability and choice. If you are thinking about buying a home in Simi Valley or the surrounding Ventura County area, this could be your moment.
Ready to see what you qualify for? Contact The Mortgage Gurus today to get pre-approved and take advantage of today’s market shift.
