How Today’s Mortgage Rates Are Shaping the Riverside County Housing Market (2025)
Mortgage rates are always a hot topic, and in 2025, they’re more important than ever. Whether you’re looking to buy your first home, sell and upgrade, or explore VA loan options, understanding how mortgage rate changes affect the Riverside County housing market is key to making smart decisions. Let’s explore what buyers, sellers, and veterans need to know right now.
1. Where Mortgage Rates Stand in Mid-2025
As of July 2025, the average 30-year fixed mortgage rates sit at approximately 6.5% for FHA loans, 6.99% for conventional loans, and 6.13% for VA loans. These rates are slightly lower than their early 2024 peaks, thanks to slowing inflation and shifts in Federal Reserve policy.
Regionally, the Inland Empire, including Riverside County, has experienced some stabilization in the housing market, which has helped curb rapid price increases seen in recent years. Still, rates are well above the 2021 lows, meaning affordability remains a top concern for many buyers.
2. What This Means for Buyers
For buyers, today’s mortgage rates translate directly into higher monthly payments compared to just a few years ago. For example, a $500,000 loan at 6.99% results in roughly $3,300/month in principal and interest, compared to $2,100/month at 3.5%.
That’s a significant difference in affordability—but it’s not all bad news. Buyers who get pre-approved and lock in their rate now can avoid potential increases later in the year. Additionally, with slightly more inventory on the market in Riverside, buyers may find less competition and more room to negotiate.
3. Advice for Sellers: Why Rates Still Matter
Sellers may think mortgage rates don’t apply to them, but they absolutely do. Higher rates mean fewer buyers can afford your listing at its full asking price. That’s why smart sellers are offering concessions like rate buydowns or closing cost credits to attract serious buyers.
If you’re selling in Riverside, positioning your property as move-in ready and competitively priced is more important than ever. Partnering with an agent who understands how to market affordability is a major asset.
4. Veteran Buyers: VA Loan Benefits in a Changing Market
Veterans have a powerful advantage in today’s market: VA loans. With lower interest rates and no private mortgage insurance (PMI), VA buyers in Riverside can often afford more home than their FHA or conventional counterparts.
In a time when affordability is shrinking, VA loan access can be a game changer. At EGA Homes, we proudly serve our veteran clients with specialized guidance tailored to their benefits.
5. Should You Wait or Buy Now?
Many buyers are asking the same question: Should I wait for rates to drop or buy now?
Here’s the reality: waiting for perfect conditions can mean missing opportunities. Home prices in Riverside are stable, and inventory has improved slightly, giving buyers more leverage. But if rates drop significantly, demand could spike, reigniting bidding wars.
Instead of waiting, consider buying smart. Look for homes that have been on the market longer, ask your lender about rate buydown strategies, and work with a local agent who understands how to structure offers for success.
Conclusion
The 2025 mortgage landscape in Riverside County presents challenges—but also unique opportunities. Buyers can still secure competitive financing, veterans can capitalize on strong VA loan benefits, and sellers can thrive with the right strategy.
At EGA Homes, our team is ready to guide you through this market with expert insight and tailored support. Let us help you make informed, confident real estate decisions this year.
Ready to get started? Contact EGA Homes today and let’s turn today’s market into your opportunity.