Realtor.com forecasts a notable rebound in California's home sales in 2024 as mortgage rates ease. Projections highlight double-digit year-over-year sales growth in Oxnard-Thousand Oaks, Riverside-San Bernardino-Ontario, Bakersfield, San Diego-Chula Vista-Carlsbad, and Sacramento. The Los Angeles-Long Beach area is expected to see a 9.2% increase after two years of decline. Despite this optimism, the report notes a unique split, with five California metros in the top 10, excluding the Bay Area and Northern California. Home prices in these markets are forecasted to exceed 40% of the 2017-19 average. Meanwhile, the Mortgage Bankers Association's index reports a 2.8% surge in mortgage applications, with the average rate for a 30-year loan dropping to 7.17%, attributing the decline to slower inflation and market anticipation of the Fed's potential policy shift. The surge in applications addresses housing demand, with a 35% increase in purchase mortgage applications and a 14% rise in refinancing applications week-over-week. Despite these positive trends, housing market challenges persist due to low inventory and affordability concerns. Analysts suggest the recent uptick in refinancing may indicate a turning point, signaling that 2023 marked the low point for refinance applications. While officials hinted at a potential rate hike in November, economists anticipate the central bank to maintain current rates, contributing to reduced mortgage rates. High mortgage rates continue to impact consumer demand, limit inventory, and deter sellers from listing their homes.