Mortgage Rates Recently Hit a 3-Year Low - Why That Matters for Buyers

If you’re a homebuyer in Riverside County who’s been waiting for mortgage rates to come down, this moment deserves your attention. Rates have officially dipped into the 5% range, something we haven’t seen in nearly three years, and that shift is already changing what’s possible for local buyers.

Right now, rates are hovering in the low 6% range, and most expert forecasts expect them to stay near this level throughout the year. While that may not sound dramatic at first glance, for buyers in markets like Murrieta, Temecula, and surrounding communities, the impact is meaningful.

Here’s why this rate environment is a big deal locally.

Why Today’s Mortgage Rates Matter More Than You Think

Mortgage rates don’t just affect how much interest you pay over time; they shape your monthly payment, buying power, and location options.

Just one year ago, when rates were closer to 7%, many Riverside County buyers felt stuck. Monthly payments climbed, affordability tightened, and first-time buyers were hit especially hard. In some cases, buyers had to compromise on neighborhood, home size, or step out of the market entirely.

Now, as rates trend lower, that pressure is starting to ease.

Borrowing costs are currently at their lowest point in nearly 3 years, and that can directly change what kind of home you can realistically afford in today’s local market.

At 6% or below, buyers are seeing:

• Lower monthly payments: for example, the payment on a $400,000 loan is more than $300 lower than it was when rates hovered near 7%.
  
• Increased buying power, allowing room for stronger offers or homes with more features.
  
• More flexibility on location, which matters in competitive areas across Riverside County.

For many buyers, this means revisiting neighborhoods or price points that felt out of reach just months ago.

Why More Buyers Are About to Re-Enter the Market

According to research from the National Association of Realtors (NAR), when mortgage rates settle around this level, affordability expands quickly.

When rates are at or below 6%:

• 5.5 million more households nationwide can afford the median-priced home

• Roughly 550,000 of those households are expected to buy within the next 12–18 months

That matters locally because Riverside County already attracts buyers looking for more space and value compared to coastal markets. As more buyers re-enter, competition is likely to increase, especially in well-priced homes and desirable neighborhoods.

In other words, the window we’re in right now may feel quieter than what’s coming next.

That’s not just speculation. That’s pent-up demand finally getting the green light they’ve been waiting for. You’ve got the chance right now to get ahead and buy before more people notice the game has just changed.

A Quick Reality Check for Local Buyers

Mortgage rates don’t exist in a vacuum. Home prices, inventory levels, property taxes, insurance costs, and your personal finances all still play a role, and those factors vary by city and neighborhood.

A lower rate doesn’t mean every home works for every buyer. That’s why getting pre-approved and reviewing your numbers with a trusted local lender is essential before making a move.

Still, compared to where we were a year ago, this rate environment puts far more buyers back in play than we’ve seen in some time.

Bottom Line

Mortgage rates hitting a three-year low isn’t just a headline, especially for buyers here in Riverside County.

For many, today’s rates could be the difference between continuing to wait and finally moving forward with a purchase. If buying didn’t make sense for you before, now is the right time to re-run the numbers and see what options are opening up.

If you’ve been waiting for a sign to take another look at your buying power, this might be it.

Let’s take a closer look at what today’s rates mean for your budget, and what opportunities are available right now in your local market.