Unexpected Drop in Mortgage Rates

Mortgage Rates Drop to 3-Year Low: What This Means for San Diego Buyers and Sellers

Mortgage rates just hit their lowest point in three years—and that’s making waves in the real estate market.

Last Thursday, a surprise $200 billion move into mortgage-backed securities (MBS) triggered a rapid drop in rates. While the jobs report had been expected to drive market movement, this unexpected shift took center stage. Lenders responded quickly, with many releasing their most competitive rates since early 2023—some even reaching levels not seen since 2021.

Why This Matters for Buyers

Lower rates mean more purchasing power. If you've been sitting on the sidelines, waiting for the right time to buy, this dip could be the opportunity you've been watching for. A lower rate can reduce your monthly payment significantly, or stretch your budget to get more house for the same cost.

What Sellers Should Know

For sellers, this shift could bring fresh momentum to the market. When rates fall, more buyers jump back in—especially in competitive areas like San Diego. Increased demand can translate to quicker sales and more favorable offers.

But There’s a Catch

The market is still volatile. Some lenders already bumped rates slightly back up later in the day, and until we see more clarity around the specifics of the MBS buying plan, expect some movement. That said, even with minor fluctuations, rates remain at some of the most attractive levels we've seen in years.

Final Thoughts

This rate dip could be a short window—or the start of a new trend. If you're thinking about buying, selling, or even refinancing, now’s the time to review your options and make a plan.

Have questions or ready to move forward? Let’s talk strategy.