2025 Mortgage Rate Update: What Homebuyers in San Diego Need to Know

At the start of 2025, mortgage rates were near three-year highs. According to Freddie Mac, during the week of January 16, 2025, the average 30-year fixed rate was 7.04 %, while the 15-year fixed rate averaged 6.27 % (CBS News, Freddie Mac Primary Mortgage Market Survey).

By late October 2025, the national average 30-year fixed mortgage rate had eased to roughly 6.19 %, according to the most recent Freddie Mac data available. Other sources, including NerdWallet and Yahoo Finance, report similar figures in the 6.1 % – 6.2 % range as of early November.

What’s Driving Rates Right Now

Rates have edged lower as inflation has moderated and the overall economy shows slower but steady growth. Market expectations that the Federal Reserve may begin lowering its benchmark rate in early 2026 have helped reduce long-term bond yields — a key factor influencing mortgage rates.

Where Rates Are Projected to Go

Forecasts from Fannie Mae and the Mortgage Bankers Association suggest that average mortgage rates are likely to remain in the mid-6 percent range through the end of 2025, with most projections clustering between 6.3 % and 6.6 %. Should inflation continue to cool faster than anticipated, modest additional declines are possible — but not guaranteed.

What This Means for You as a Buyer

For San Diego-area homebuyers, even a small change in rates can make a big difference. A one-percentage-point drop in mortgage rates can reduce a typical monthly payment by several hundred dollars — depending on the home price, down payment, and loan program.

If you’re planning to buy a home:

• Get pre-approved early so you can act quickly when you find the right property.

• Compare lenders and loan options — even a small rate or fee difference can save thousands over time.

• Stay flexible — rates move daily, and timing can make a measurable difference in affordability.

Disclaimer

This article is for informational purposes only and should not be construed as financial, mortgage, or legal advice. Mortgage interest rates vary based on borrower credit, loan product, down payment, and lender policies. Past performance does not guarantee future results. Always confirm current rates and loan terms with a licensed mortgage professional before making any financial decisions.

Kristel Wilson | REALTOR® | CA DRE #02347988

Premier Agent Network, Inc.