If you've been watching the SoCal market and wondering why prices keep climbing even while affordability feels worse than ever, you’re not alone. We asked experts to give us their take on why rates and prices across the region aren't moving in the direction most people expect.
Where Rates Stand Right Now
As of early August, the average 30-year fixed mortgage rate sits at roughly 6.7%, according to Freddie Mac's weekly survey. That's actually higher than it was a year ago, when the average was closer to 6.6% - and most forecasts don't expect the 30-year to drop much below 6% before year-end.
But Prices Have Kept Rising
Here's the part that surprises a lot of buyers: median home prices have climbed even with higher interest rates. So why is this?
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Inventory is still tight relative to demand. Even with rates elevated, there simply isn't enough housing to meet demand from buyers. Scarcity is propping up prices regardless of financing costs.
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Move-up buyers are cash-heavy. A large share of buyers are trading up from homes they've owned for years, often with substantial equity or even paying cash. That means they are less sensitive to rate swings than a first-time buyer stretching for a down payment.
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"Rate lock-in" is keeping sellers on the sidelines. Homeowners who refinanced or bought when rates were in the 3-4% range are reluctant to sell and give up that rate. That keeps inventory artificially low, which supports pricing even as buyer demand cools.
What's Softening Instead of Price
While the median price line looks resilient, other market indicators are clearly responding to rate pressure.
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Days on market are up in Orange County: Homes are taking on average 46 days to sell, compared to 41 days a year ago.
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Days on market vary sharply across San Gabriel Valley. Some cities are still moving relatively fast (around 35-37 days), while others have slowed more noticeably -, a sign that buyer patience has grown even where prices haven't budged.
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Carrying costs matter more everywhere. On a $1.2M property, property taxes alone run roughly $1,100–1,250 a month, and every extra week on market adds to a seller's total cost of holding.
Bottom Line
Higher rates haven't broken the local markets - they've just changed the rhythm. Prices are still grinding upward in most cities because supply is too tight for rates alone to fix, but the days of instant multiple offers are gone almost everywhere except the tightest school-zone pockets. Whether you're buying or selling, the smartest move is planning around today's rate environment
