Why Waiting for 3% Mortgage Rates Could Cost You More in Conejo Valley

A lot of buyers are pressing pause on their plans these days, holding out hope that mortgage rates will come down – maybe even back to the historic-low 3% from a few years ago. But here’s the thing: those rates were never meant to last. They were a short-term response to a very specific moment in time. And as the market finds its footing again, it’s time to reset expectations.

Back in 2020 and 2021, 3% mortgage rates gave buyers a serious boost: more affordability, more buying power, and more opportunity. But those rates were a result of emergency economic policies during the height of a global pandemic. Now that the economy is in a different place, we’re seeing mortgage rates in the high 6% to low 7% range.

And while experts currently project a slight easing in the months ahead, most industry leaders agree: rates are not going back to 3%.

Instead, many forecasts suggest mortgage rates will settle in the mid-6% range by the end of the year, pending any major economic shifts. As Kara Ng, Senior Economist at Zillow, says:

“While Zillow expects mortgage rates to end the year near mid-6%, barring any unforeseen shocks, that path might be bumpy.”

What Conejo Valley Homebuyers Should Know

If you're thinking about buying a home in Westlake Village, Agoura Hills, or anywhere in Thousand Oaks or Simi Valley, waiting for 3% mortgage rates might mean missing today’s real opportunities. Instead of putting off your home search indefinitely, now’s the time to take control—focus on your budget, improve your credit score, and team up with a trusted Conejo Valley real estate agent and lender.

Local market experts can walk you through your options, including:

• Down payment assistance programs

• Alternative and creative financing solutions

• Strategic negotiation tips in today’s real estate market

• Local housing inventory trends in Newbury Park, Agoura Hills, and beyond

Here’s the biggest thing to keep in mind: if rates do drop even slightly later this year, demand in the Conejo Valley real estate market will likely surge. That means more competition and potentially higher prices. Acting now could give you a crucial advantage—less competition and more homes to choose from, especially since we’re currently seeing more listings hit the market in places like Simi Valley and Thousand Oaks than we have in recent years.

Think about it—if mortgage rates ease, what do you think everyone else is going to do? That’s right – they’ll jump back in too.

Realtor.com puts it clearly:

“Staying out of the market in hopes of a rate drop that never comes can lead to missed opportunities . . . Rising home prices, rent increases, and inflation might outpace any future savings on interest. And if rates do fall sharply again, buyers could face an entirely different challenge: surging competition.”

Bottom Line

Those 3% rates everyone remembers from a few years ago were the exception, not the rule.

Now that rates are stabilizing into a new normal, it’s a smart time to adjust your expectations—and your strategy. Whether you're a first-time homebuyer in Agoura Hills, upgrading in Westlake Village, or relocating to Newbury Park, working with a local real estate team that understands the Conejo Valley market is essential.

At Lydia Gable Realty Group, we help buyers like you navigate this changing landscape with clarity, local expertise, and personalized guidance. Reach out today to learn how we can help you make the right move—before everyone else does.