Chris Jurilla of US Bank says that will impact the Federal Reserve's plans to cut interest rates.
"I think the fed would be less inclined to lower interest rates come their next meeting," Jurilla said. "What that means for the potential home buyer is they've already seen a nice drop, fluctuation, and the rates are back below the 7% range for the first time since last August."
Jurilla says that doesn't mean you should stop thinking about buying a home this year, especially with so many programs available for first-time home buyers and move-up buyers.
Some offer down payment assistance. Others offer credits on closing costs.
"My biggest piece of advice would be to meet with a mortgage loan originator," Jurilla said.
Jurilla says when interest rates do start to drop, more buyers, and more competition, will enter the housing market
"It remains a great avenue for wealth creation, and when you look at all the home buyers who bought 10-15 years ago, ask them what their house was worth back then and what it's worth now," Jurilla said.
He adds even though we're seeing interest rates above 6%, you can always refinance in the future when the rates drop.
"Properties always increasing in value, especially in California wherever you buy," Jurilla said.
Real estate experts say inventory remains low because many prospective sellers don't want to part with the very low interest rates they locked in just a few years ago.
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