Mortgage Rates Today:

What Higher Interest Rates Mean for San Diego Home Buyers and Sellers

September 29, 2026

Mortgage interest rates remain one of the most important factors influencing today’s housing market. For San Diego County buyers and sellers, understanding where rates are today—and what they mean for affordability, purchasing power and home values—is increasingly important.

Where Are Mortgage Rates Today?

As of September 29, 2026, the national average for a 30-year fixed mortgage is around 7.3%, while California’s average is approximately 7.4%, according to current rate surveys. Freddie Mac’s most recent weekly survey, released September 24, showed a 30-year fixed average of 7.03%, up from 6.95% the previous week. (Freddie Mac)

For comparison, Freddie Mac reported that the 30-year fixed rate was 6.30% one year ago. (Freddie Mac)

That difference may look relatively small, but even a one-percentage-point change can have a meaningful effect on a buyer’s monthly payment and purchasing power.

What Does This Mean for San Diego Home Buyers?

Higher mortgage rates generally reduce the amount a buyer can comfortably borrow.

For example, a buyer financing $800,000 with a 30-year fixed mortgage would have a principal-and-interest payment of approximately:

• 6.0%: $4,796 per month
• 7.0%: $5,322 per month
• 7.3%: $5,458 per month

These figures do not include property taxes, homeowners insurance, HOA dues or other housing expenses.

This is why today’s buyers need to look beyond the sales price. The monthly payment is often just as important as the purchase price.

Higher Rates Don’t Necessarily Mean Buyers Should Stay on the Sidelines

Waiting for mortgage rates to fall can make sense for some buyers, but there is an important trade-off.

If rates decline in the future, buyers may see improved purchasing power. However, lower rates can also bring additional buyers into the market, potentially increasing competition for desirable properties.

There is also no guarantee that rates will fall to a particular level or on a particular timeline.

Instead of trying to predict the perfect time to buy, buyers can focus on factors they can control:

• Determine a comfortable monthly payment.
• Compare multiple lenders and loan programs.
• Improve credit where possible.
• Consider different down-payment options.
• Look at homes in a range of price points.
• Evaluate the property’s taxes, HOA and insurance costs.
• Consider whether a temporary or permanent rate buydown makes sense.

What Does This Mean for San Diego Home Sellers?

Higher mortgage rates can make buyers more payment-sensitive.

That means sellers may need to pay closer attention to pricing, condition and market positioning. A home that is priced appropriately and presented well may attract buyers who are carefully evaluating every dollar of their monthly housing expense.

Sellers should also understand that today’s market is different from the ultra-low-rate environment of 2020–2021. Buyers have more reason to scrutinize the overall cost of ownership.

In some transactions, sellers and buyers may also negotiate concessions that can help address closing costs or interest-rate considerations, subject to the loan program and transaction terms.

Interest Rates and Home Values

Higher mortgage rates can put downward pressure on affordability, but that does not automatically translate into falling home values.

The latest FHFA data reported that U.S. single-family home prices increased 2.6% year over year through July 2026, even as higher mortgage rates and increased inventory affected demand. (Reuters)

San Diego is its own market, however. Neighborhood, school district, property condition, lot size, views, amenities and available inventory can all have a significant influence on an individual property’s value.

This is why looking only at national housing statistics can be misleading when determining what a particular San Diego County property is worth.

Should You Buy or Sell Now?

There isn’t one answer that applies to everyone.

For a buyer, the right decision depends on income, available cash, credit, desired location, monthly-payment comfort and long-term plans.

For a seller, the decision may depend on equity, the reason for selling, replacement housing costs and current market conditions in the property’s specific neighborhood.

Rather than trying to predict exactly where mortgage rates will go next, homeowners and buyers can make decisions based on today’s numbers while keeping their long-term goals in mind.

The Bottom Line

Mortgage rates are currently around the 7% range, making affordability an important consideration for San Diego County real estate buyers and sellers. (Freddie Mac)

The good news is that a changing interest-rate environment doesn’t eliminate opportunities—it changes how buyers and sellers need to approach the market.

If you’re considering buying, selling or simply want to know how today’s interest rates affect the value and affordability of a San Diego County home, understanding your individual numbers is a good place to start.

Steve Cardinalli
Real Estate Professional, 01323509
(760) 814-0248
Steve@Cardinalli.com
www.Cardinalli.com
Century 21 Affiliated Fine Homes & Estates
Village Faire in Carlsbad Village
300 Carlsbad Village Dr, 223
Carlsbad, CA 92008

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Mortgage rates change frequently and vary based on loan type, credit profile, down payment, property type, points and other factors. The rates referenced above are market averages and are not a loan offer or quote.