Are mortgage rates really dropping again?
Yes — rates are now near their lowest point of 2025, creating fresh opportunities for both buyers and sellers across San Diego.
Rates Near 2025 Lows
According to Freddie Mac, the 30-year fixed mortgage now averages 6.19%, down from last week and about half a point lower than a year ago. The 15-year fixed sits at 5.44%.
This marks the second consecutive weekly decline, signaling a more favorable environment for homebuyers and homeowners considering a refinance.
Why It’s Happening
A cooling job market and speculation ahead of next week’s Federal Reserve meeting are driving the dip. While the Fed doesn’t directly set mortgage rates, its rate decisions ripple through financial markets.
If the Fed cuts short-term rates — a move many expect — mortgage rates could edge even lower heading into 2026.
Opportunity for Buyers and Sellers
For buyers: Lower rates mean improved affordability and more purchasing power, especially in desirable areas like La Jolla, Del Mar, and Encinitas.
For sellers: Softer rates can re-ignite demand. With limited inventory across San Diego’s coastal markets, a well-priced home can stand out even during the winter months.
What’s Next
Most experts expect rates to stay “flat but favorable” through year-end. If you’ve been waiting for the right time to buy or sell, this moment offers a strategic window before spring competition returns.
Local Insight You Can Trust
We’ve sold thousands of homes across La Jolla, and the North County coastal communities like Del Mar, Encinitas, Solana Beach, Carlsbad, Cardiff, and Rancho Santa Fe, and many more throughout San Diego. We’re the #2 ranked real estate team per the SDBJ for medium teams in 2024, serving clients across all of coastal San Diego, and the #2 ranked medium team by volume in San Diego for 2024, per RealTrends. With 2,100+ homes sold and $3.625B in career sales, we bring insight, discretion, and strategy to every move.
