Are 7.6% mortgage rates the end of the Santa Clarita dream?
No. But it's a harder market, and I won't pretend otherwise. Rates have climbed fast. The 30-year fixed averaged 6.34% a year ago, and today's rate is 7.6%. If you're looking at homes in Valencia, Saugus, Canyon Country, Newhall, Stevenson Ranch, or Castaic, that jump hurts.
I'm Kimberly Hargraves of The Real Houses of SCV. I'm helping buyers through this market right now, and here's what I tell them.
What a higher rate costs you
On a hypothetical $800,000 home with 20% down, each 1-point rate increase adds roughly $400 a month to your principal and interest payment. That's real money, so let's talk about how to offset it.
5 strategies for buying with high interest rates in Los Angeles County
- Negotiate a seller credit or rate buydown. When homes sit longer, sellers often agree to concessions. A temporary 2-1 buydown or a permanent buydown can lower your payment.
- Budget around today's rate, not a future one. Don't count on rates dropping. Get pre-approved and decide what monthly payment feels comfortable at today's rate. If you can afford the home now, any future drop is a bonus, not a requirement.
- Compare loan types. An adjustable-rate mortgage (ARM), FHA, VA, or assumable loans may beat a conventional 30-year, depending on your situation.
- Shop at least three lenders. Rate quotes vary widely, and a small difference adds up over 30 years.
- Use a local agent who knows SCV. Pricing, days on market, and HOA or Mello-Roos costs differ block by block. Good local data helps you make a stronger offer.
Should you wait for rates to drop?
Nobody can time rates. If they fall, buyer demand usually surges, competition returns, and prices can rise. Waiting can cost you leverage as well as help your payment. The better question is whether you can comfortably afford the payment today.
FAQ: Buying a home in Santa Clarita with high mortgage rates
What are mortgage rates in Santa Clarita today?
Rates vary by lender, credit score, and down payment. Today's rate is around 7.6%. Contact a lender for a personalized quote.
Is it a good time to buy a house in Santa Clarita Valley?
It depends on your finances and timeline. Higher rates mean less competition and more negotiating room. Many buyers are using that leverage.
Can I negotiate a lower price when rates are high?
Often, yes. Sellers who need to move may accept lower prices or concessions, especially on homes that have been listed a while.
What is a mortgage rate buydown?
You (or the seller or builder) pay upfront to reduce your interest rate, either temporarily or for the life of the loan.
Do I need a realtor to buy new construction in Santa Clarita?
You aren't required to have one, but the builder's sales agent represents the builder's interests. A buyer's agent negotiates for you, and the builder typically pays their commission.
What incentives do new home builders offer?
Common ones include mortgage rate buydowns, closing cost credits, free upgrades, and flex cash. They change often, so ask before you tour.
How much house can I afford at 7.6% interest?
It depends on your income, debts, and down payment. I can walk you through the numbers before you tour a single home.
Ready to run your numbers?
Reach out to me directly at [email protected] or 661.678.5238 for a free buyer strategy session. Whether you're looking at resale or new construction, we'll look at your budget, your loan options, and the neighborhoods that fit your life.
Kimberly Hargraves, Realtor | DRE# 02154095 | The Real Houses of SCV, serving Santa Clarita Valley and greater Los Angeles and Ventura Counties.