SoCal home prices surge to record high amid low mortgage rates, shrinking supply

A new report finds the median home price from Ventura to San Diego counties hit a record-high $550,000.

Experts say low mortgage rates and shrinking supply helped drive home purchasing up 22% in a year. Mortgage rates have shown stability in recent months, buoyed by positive economic data, a strong job market and improved sentiment in the housing market.

The median price is highest in Orange County at nearly $733,000, while homebuyers are paying about $628,000 in Los Angeles County. Riverside County had one of the biggest increase at just over $400,000.

U.S. long-term mortgage rates fell this week to their lowest level in three months, deepening the incentive for prospective homebuyers although they face eroded affordability as prices continue to climb.

Mortgage buyer Freddie Mac said Thursday that the average rate for a 30-year fixed-rate mortgage declined to 3.60% from 3.65% last week. The benchmark rate stood at 4.45% a year ago.

The average rate on a 15-year mortgage eased to 3.04% from 3.09% last week.

The Associated Press contributed to this report.