Reality Steve spoiler blogger Steve Carbone posted photos of the pair eating at Bear Flag Fish Co. in Newport Beach, and TMZ obtained pictures of Matt and Rachael at a bar called JuneShine with friends.
"Rachael and Matt have been spending the last week in Orange County together. They have been staying at a friend's house trying to be low-key," a source close to Matt told E! News.
The source clarified, "They aren't back together, but definitely still have feelings."
The hangout session came about a week after Us Weekly reported Matt and Rachael's relationship ended for good and they were "on non-speaking terms" after Matt was accused of two-timing Rachael with a woman named Grace from Florida and lying to both women.
"Matt felt horrible about what went down with him and Rachael recently and wanted to see her. He initiated the visit," the source explained.
While Matt allegedly didn't reach out to Rachael during a visit to Atlanta over April 17 weekend to make amends, he reportedly contacted the Georgia native to meet up with him in California this past weekend.
The source told E! News that Rachael was "very skeptical" of Matt's invitation but she ultimately "cares about Matt and wanted to hear what he had to say."
"They are having a good time right now and everything feels back to normal between them," the source noted.
Matt and Rachael fell in love on The Bachelor's 25th season but then Matt said he broke up with the brunette beauty in mid-February after she apologized for racially-ignorant and racially-insensitive behavior over the last several years.
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Following their March appearance on The Bachelor: After the Final Rose, Matt stayed in touch with Rachael and allegedly told her that he still loved her and wanted to date her again, according to Carbone.
Matt and Rachael therefore reunited in New York City on April 6. But just two days beforehand, Matt allegedly spent time in Miami, FL, and reached out to Grace, a woman he had dated before and after being named The Bachelor star last year.
Carbone claimed in a recent Instagram Live session Matt had been "trying to hook up" with Grace in Miami and treated her like "a booty call."
A source told Us earlier this month that Rachael thought she and Matt were on the track to getting back together but once she found out about Grace, she felt "manipulated" by her ex-boyfriend and "very emotional."
Another insider echoed that sentiment and told E! News around the same time, "Matt and Rachael are no longer speaking and Rachael is really upset about the situation that happened."
"She is devastated and feels totally played by Matt," the insider added. "Rachael really trusted that they could have a future together and is heartbroken."
Although Grace and Matt did not actually meet up in Miami, Grace reportedly confronted Matt on the phone once she heard about Matt and Rachael's subsequent reunion in New York.
"Matt was flat out lying to [Grace's] face... He called Grace back and said, 'I would never try and get with you Sunday night if that were the case,'" Carbone claimed.
A person close to Rachael reportedly made Rachael aware of Matt's alleged betrayal and then Rachael also demanded that Matt tell her the truth, which Carbone said resulted in Matt insisting Grace didn't mean anything to him and he just needed another body to fill out a table at a Miami club one evening.
Not true, because when Grace told him, 'I'm not going to see you,' on [April 4 and] 'I don't want to go to a party,' [Matt] said, 'Well, maybe we can have time to ourselves,'" Carbone recalled.
"So it was clear Matt wanted to be with her on Sunday night, but she never did."
The spoiler blogger added, "I just want to applaud Matt on the effort he's putting into playing two women at the same time."
Despite Matt's denial about Grace, "Rachael essentially walked out on Matt and [said], 'We're done,'" according to Carbone.
"Matt got caught with his pants down and she left and called her [The Bachelor] girls and hung out with them... She left Matt's apartment in a huff very upset and crying," Carbone said.
Rachael also reportedly contacted Grace directly to compare stories and the two women determined Matt had been playing them both.
Grace later confirmed Carbone's reporting about her interactions with Matt when she participated in an Instagram Live session with the spoiler blogger, and the Us source claimed Grace totally "dropped [Matt]" after her findings.
According to Carbone, early-April reports Matt was just hanging out with Rachael in New York as a supportive friend amid the fallout of her racism controversy "couldn't be further from the truth."
Matt allegedly FaceTimed with Rachael every day following After the Final Rose and had every intention of reconciling with her until she discovered his alleged attempt to hook up with Grace.
"[Matt] has been up Rachael's ass for three weeks," Carbone argued on Instagram, elaborating, "[He's] been telling Rachael he wants to be back together with her and he wants to have a relationship with her."
Carbone insisted, "The narrative him and his camp are spinning in the media right now is gaslighting, it's manipulative and it's bullsh-t... He's trying to cover his ass."
Rachael was reportedly left feeling very hurt after the scandal but is doing well now.
"She's working on her mental health and getting into a much better headspace," the Us source said. "She's focusing on her own antiracism work and working on herself right now. She's not looking to jump into the dating field any time soon."
When Grace shared her side of the story on Instagram Live with Carbone, she admitted Matt trying to spend time with her right before reuniting with Rachael "didn't sit right" with her.
Grace said Rachael deserved to be made aware of Matt's behavior and she was the real "victim" in the situation.
"I'm completely fine... [but] when guys are two-timing you, it's just not okay. I hope [Rachael] finds someone better," Grace noted.
"At a certain point when you start changing your character and lying and gaslighting and doing all of these things to protect your image and your fame, that's sort of when I have an issue. All power to you if you go on the show for fame, but in Matt's case, it got to a point where it was a little too much."
Matt previously said he had ended his romance with Rachael to allow her some space as well as an opportunity to educate herself on racism in America and "put in the work" to become a better person. Rachael, for instance, came under fire for posing in photos at an antebellum-themed "Old South" party at her Georgia college in 2018.
Matt said during an appearance on The Bill Simmons Podcast last month, "You hear people harping on forgiveness and I forgave her when she told me [about her mistakes], but that doesn't mean I'm not disappointed and I don't want her to do better."
Us recently reported Matt believes Rachael isn't a racist but he thought it "wasn't a good look for him to stay with her."
Matt had suggested in multiple interviews, however, he wasn't necessarily permanently closing the door on his relationship with Rachael, who had called Matt "the love of my life" and defendedThe Bachelor star against bullying and harassment following the announcement of their split.