If you’ve been eyeing a home in North Park, San Diego or surrounding neighborhoods in the area, now might be the perfect time to make your move. Recent drops in mortgage rates have increased purchasing power, making homes more accessible to buyers in this vibrant neighborhood.
Mortgage Rates Hit 11-Month Low
As of September 2025, the average 30-year fixed mortgage rate has fallen to a whopping 6.39%, the lowest level since October 2024. This decline is attributed to slowing job growth and expectations of a Federal Reserve rate cut that’s coming soon, leading to a surge in mortgage applications and increased buyer activity.
How Lower Rates Affect Your Buying Power
Mortgage rates directly impact your monthly payment and the total loan amount you can afford. With lower rates, you can either:
- Buy a more expensive home without increasing your monthly payment.
- Reduce your monthly payment for the same home.
For example, with a $3,000 monthly budget:
- At a 6.9% rate, you could afford a home priced at approximately $446,000.
- At a 6.5% rate, that increases to about $460,500.
- With the current rate of 6.39%, you can afford a home priced at approximately $468,000.
- This represents an increase of $22,000 in purchasing power over the past three months.
Monthly Savings Add Up
Consider the median home price in San Diego, which is approximately $1,050,000. With the current mortgage rate drop of 6.39%, your monthly payment would be around $6,500. If rates were higher, say at 7.04%, the payment would be approximately $6,900. That’s a monthly savings of about $400, or $4,800 annually.
These savings can be redirected toward:
- Building an emergency fund.
- Paying off high-interest debt.
- Saving for future investments or vacations.
North Park Real Estate Snapshot
North Park remains a sought-after neighborhood in San Diego. As of August 2025, the median sale price for homes in North Park was $827,500, reflecting a 2.6% decrease year-over-year. Homes in this area typically sell after 28 days on the market, indicating a balanced market with opportunities for both buyers and sellers.
With Mortgage Rate Drops, Is Now the Right Time to Buy?
With mortgage rates at a low point and home prices in North Park showing signs of stability, it’s an opportune time to consider purchasing a home. However, it’s essential to act promptly, as market conditions can change.
If you’re interested in exploring homes in North Park or have questions about how these rate changes affect your buying power, feel free to reach out.
The McT Real Estate Group is here to provide personalized guidance to help you navigate the current market.