Our team closely monitors market data, and we've identified a compelling trend in interest rates and Lamorinda buying patterns. In the current Lamorinda real estate market, buyer activity tends to decline when jumbo mortgage interest rates hover at or above 7%.

Reflecting on this trend, November 2023 presented an exceptional opportunity for purchasing property, characterized by reduced competition and lower purchase prices for those who could manage the higher rates. With fewer buyers competing for homes, sellers became more realistic with property pricing, understanding how interest rates affected affordability. Historically, rates tend to drop by almost 1% after peaking, as observed in November. 

If this trend continues, we may see a softening in the plateau with lower rates. Now is the time to consider entering the market, especially while others are distracted by summer vacations and the recent increase in rates. This could be a strategic moment to make a move, taking advantage of the current conditions before buyer activity picks up again. 

Below is the FRED Chart - FRED is Federal Funds Effective Rate from the Federal Reserve Bank.