Mortgage rates hit their lowest point in the past 18 months, which is exciting news for those in San Diego who have been holding off on purchasing a home. If you’ve been waiting for the right moment, now could be your chance to secure a more affordable monthly payment.
Even a slight dip in mortgage rates can make a noticeable difference in your budget. However, this current drop is far from minor. According to Sam Khater, Chief Economist at Freddie Mac:
“Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.”
This shift opens up new opportunities for prospective homebuyers in San Diego, potentially making it easier to achieve the dream of owning a home in this vibrant market.
How Lower Rates Boost Your Buying Power in San Diego
However, if you prefer to see the numbers to truly grasp the difference, let’s break down the math. It’s eye-opening when you dive into the details of how these changes affect your monthly payments.
For example, the chart below illustrates the monthly principal and interest payments on several price points, from $860,000 up to $940,000 home loan. It shows the difference in buying power from what a buying would pay at 5.25% up to 7.25%. It is a big difference.
The shift from a 7.5% rate just a few months ago to the low 6% range makes a substantial impact. That’s a significant amount back in your pocket each month. In a competitive real estate market like San Diego, these savings can be a game-changer for both first-time buyers and those looking to upgrade. So make sure to take advantage while mortgage rates hit lowest point.
Bottom Line on San Diego Mortgage Rates
Mortgage rates have recently dipped to their lowest point in nearly two years, boosting your buying power significantly. This is a great moment, especially for those eyeing the San Diego market. With these favorable conditions, now could be the perfect time to explore your options and take advantage of this unique opportunity. Connect with the McT Real Estate Group and let’s discuss how you can make the most of this chance to find your ideal home in sunny San Diego.