A Homebuyer’s Holiday Gift: Mortgage Rates Dip, Offering New Hope for 2026
As the year comes to a close, the real estate market has delivered a welcome gift to prospective homebuyers in San Diego and across the nation. The average rate on a 30-year fixed mortgage has ticked down to 6.18%, a significant drop from the 6.85% seen at the same time last year . This downward trend, reported by the San Diego Union-Tribune, is creating a more favorable environment for buyers as we head into the new year.
For anyone who has been waiting on the sidelines, this shift in the market could be the opportunity you’ve been looking for. In this post, we’ll explore the details of this encouraging trend and what it means for your homebuying journey in San Diego.
A Closer Look at the Numbers
The recent dip in mortgage rates is part of a broader trend of easing that began in the summer of 2025. While the market remains dynamic, the general direction is one of increased stability and affordability. Here’s a quick look at the key numbers from the latest report:
Mortgage Type
Current Rate (Dec 24, 2025)
Rate Last Year
30-Year Fixed -6.18% -6.85%
15-Year Fixed - 5.50% -6.00%
This decrease in borrowing costs translates directly to more purchasing power for buyers. A lower interest rate means a lower monthly payment, which can make a significant difference in a high-value market like San Diego.
What’s Driving the Trend?
Mortgage rates are influenced by a variety of economic factors, including the Federal Reserve’s interest rate policies and the performance of the bond market. The recent easing of rates is a reflection of a cooling economy and lower inflation, which has led to a more favorable environment for long-term loans.
While the Fed’s actions don’t directly set mortgage rates, they do have a significant influence. As the article notes, the Fed’s rate cuts, which began in September and continued through December, have played a role in the current trend .
A More Favorable Market for Buyers
The combination of lower mortgage rates and an increase in housing inventory is creating a more balanced market. As the San Diego Union-Tribune reports, “Home listings are up sharply from last year, and many sellers have resorted to lowering their initial asking price as homes take longer to sell” .
This shift gives buyers more leverage than they have had in recent years. With more homes to choose from and less competition, buyers have more room to negotiate on price and terms. This is a significant change from the frenzied market of the past, and it’s a welcome development for those looking to enter the market.
Your Opportunity in 2026
If you’ve been dreaming of owning a home in San Diego, the current market conditions may present the perfect opportunity. With rates at their lowest levels in over a year, now is an excellent time to explore your options.
Our team of experienced real estate professionals can help you navigate this evolving market. We can connect you with trusted lenders, help you understand your budget, and guide you through every step of the homebuying process. Don’t let this window of opportunity pass you by. Contact us today to start your journey toward homeownership in San Diego.
References
[1] Average US long-term mortgage rate ticks down to 6.18% this week