Are lower mortgage rates bringing new opportunities to San Diego’s housing market?
Yes — after more than a year of higher borrowing costs, rates have eased to their lowest levels since mid-2024. That shift is already sparking new energy among buyers and sellers across coastal San Diego.
Rates Are Drifting Lower
According to Freddie Mac, as of October 23, 2025, the average 30-year fixed mortgage rate has dropped to 6.19%, while 15-year loans are averaging 5.44% — both the lowest in more than a year.
The Mortgage Bankers Association reports that refinance applications are up 81% compared to this time last year, and purchase applications have climbed 20% year-over-year. Even the National Association of REALTORS® has noted an uptick in home sales — a clear sign that buyers are re-entering the market.
For anyone who paused their home search in 2023, this shift could be a meaningful turning point.
Why This Matters in Coastal San Diego
In premier communities such as La Jolla, Del Mar, Solana Beach, Encinitas, and Rancho Santa Fe, lower mortgage rates play a powerful supporting role — even for well-qualified and cash-heavy buyers.
Lower rates can:
- Expand the buyer pool, creating more competition for desirable listings.
- Help move-up buyers secure larger properties while maintaining manageable payments.
- Encourage refinances, freeing equity for remodels or investment purchases.
In short: lower rates enhance flexibility — for buyers, sellers, and current homeowners alike.
Why Sellers Should Pay Attention
With affordability improving and more buyers returning to the market, sellers across San Diego’s top neighborhoods may see renewed momentum. A larger pool of qualified buyers often leads to:
- Faster sales and cleaner offers
- Greater potential for multiple-offer scenarios
- Increased confidence in pricing premium homes
If you’ve been considering listing your property, this moment offers a strong window of opportunity — particularly for homes with standout lifestyle features like ocean views, indoor-outdoor flow, or proximity to the beach.
Our Insight: How to Maximize This Market
As rates trend lower, strategy matters more than ever. Whether you’re buying or selling, timing, presentation, and local expertise are key.
- Buyers: Get pre-approved early. A locked-in rate gives you leverage when the right home hits the market.
- Sellers: Partner with agents who understand your neighborhood — from Bird Rock to Olde Del Mar — and know how to position your home to stand out online and in person.
Why Work with Maxine & Marti Gellens
We’ve sold thousands of homes across La Jolla, and the North County coastal communities like Del Mar, Encinitas, Solana Beach, Carlsbad, and Rancho Santa Fe, and many more throughout the city of San Diego. We’re the #2 ranked real estate team per the San Diego Business Journal for medium teams serving clients across all of coastal San Diego, and the #2 ranked medium team by volume in San Diego for 2024, per RealTrends.
With over 2,100 homes sold and $3.625 billion in career sales, we bring insight, discretion, and strategy to every transaction — whether you’re listing a bluff-front estate or relocating within your own neighborhood.
Your Move Starts Here
Today’s lower rates are reshaping what’s possible in San Diego’s housing market. Whether you’re ready to buy, planning to sell, or just exploring your options, now is the time to talk strategy.
Contact Maxine & Marti Gellens, Berkshire Hathaway HomeServices, to discuss how these shifts can work to your advantage in the current market.
