Lowest Interest Rates in 3 Years

Mortgage Rates Just Hit Their Lowest Average Since September 2022 — What That Means for San Diego Buyers & Sellers

Mortgage rates in the U.S. recently declined to their lowest average level in more than three years, sparking renewed attention across the housing market. According to a recent report from Homes.com, the average 30-year fixed-rate mortgage dipped to approximately 6.01%, while the 15-year fixed average fell to about 5.35% — both figures not seen since September 2022.

While national trends do not always perfectly mirror local markets, shifts like this directly influence buyer behavior and seller strategy across San Diego County.

What’s Happening With Mortgage Rates

Here are the key takeaways from the Homes.com analysis:

• The 30-year fixed average is down to roughly 6.01%, the lowest level in over three years.

• The 15-year fixed rate also experienced a meaningful decline.

• Refinance activity has increased as homeowners take advantage of lower borrowing costs.

• Pending home sales remain mixed nationally due to affordability challenges, but lower rates are expected to stimulate activity moving into the spring season.

What This Means for San Diego Buyers

Even modest rate changes can significantly impact purchasing power in higher-priced markets like San Diego.

A reduction of even half a percentage point can translate into:

• Greater buying power

• Lower monthly payments

• Improved qualification ratios

• Increased competition once activity accelerates

For buyers who were sidelined due to affordability constraints, this shift may create a window of opportunity before competition intensifies.

What This Means for San Diego Sellers

Lower mortgage rates often bring renewed buyer confidence. As more buyers qualify and payment thresholds improve, demand can strengthen — especially in desirable neighborhoods with limited inventory.

For sellers, this can mean:

• More showings

• Stronger offers

• Reduced need for concessions

• Improved pricing leverage

Strategic pricing and presentation remain critical, but declining rates can serve as a catalyst for increased market momentum.

Refinance Opportunity for Current Homeowners

For homeowners who purchased when rates were higher, this may also be a moment to explore refinancing options. Even a modest reduction in rate can improve cash flow, allow for debt consolidation, or support investment plans.

What Happens Next?

Mortgage rates remain sensitive to inflation data, economic indicators, and Federal Reserve policy. While no one can guarantee future direction, entering the spring market with rates at their lowest average since 2022 is generally a positive signal.

In markets like San Diego — where demand historically rebounds quickly — early preparation often creates advantage.

Bottom Line

Mortgage rates reaching their lowest level since September 2022 is meaningful. While affordability and inventory continue to shape the 2026 landscape, lower borrowing costs can reignite activity for both buyers and sellers.

If you would like a personalized breakdown of how current rates affect your purchasing power or your home’s value in today’s market, a tailored analysis can provide clarity before the next market shift occurs.