California housing market battles back

by LaDonna Azagra

California’s housing market is rebounding from last year’s interest rate spike. Although sales dipped in June due to higher rates in April and May, pending sales are rising again thanks to a recent drop in mortgage rates. The increase in supply from both resale inventory and new construction is also helping.

Builders and buyers are regaining confidence, bolstered by recent economic reports. A Reuters poll of 100 economists predicts the Federal Reserve will hold rates steady on July 31, with a possible 25-basis-point cut in September, which could lower the federal funds rate to 5.00-5.25 percent.

Overall, California's housing market is on the mend, with promising signs for continued recovery.