Purchase Loans Are Rising — Is Now the Right Time to Buy?

Despite high mortgage rates cooling the market, purchase loan volume is actually climbing. Here's what California homebuyers need to know right now.

Mortgage rates hit their highest point of the year this past summer, and the impact is being felt across the housing market. Pending home sales dipped about 2% compared to last year, and new single-family home construction fell sharply — down nearly 16% year-over-year in July. Refinance activity also hit its lowest level of the year.

But here's the interesting flip side: purchase mortgage volume actually increased nearly 4% in July. That tells me serious buyers are still moving forward, even in a higher-rate environment. The competition may be lighter than you'd expect, and motivated sellers are still out there.

For California buyers considering FHA or VA financing, these government-backed loan programs remain active and widely available. VA loans in particular continue to represent a massive share of the market — well over 40% of government-backed securitizations — making them one of the strongest tools available for eligible veterans and military families.

If you've been sitting on the sidelines waiting for rates to drop, know that purchase activity is picking up regardless. Getting pre-approved now positions you to move quickly when the right home comes along.

Ready to explore your options? Contact us today to review current FHA, VA, and conventional loan rates tailored to your situation.