Buying a house in San Diego is exciting, but most of the buyers who ask the first question in 2025 are simple: "What are the mortgage rates at this time?"
Rates matter because even a small change can increase or reduce your monthly payment to hundreds of dollars. Let's analyze the current mortgage rates, which banks have the best proposals, what experts say for 2025 and 2026, and what effect it has on buyers in San Diego.
Today’s Mortgage Rates in San Diego
As of August 2025, San Diego's average 30-year fixed mortgage rate is about 6.48% (Realtor.com).
Some popular banks in California are showing these rates:
Wells Fargo – About 6.50% for the 30-year fixed loan and 5.50% for 15-year fixed loan (Wales Fargo).
👉 In short: Most home buyers of San Diego are currently expecting an interest rate between 6% to 6.5%.
Which Lender Has the Lowest Rates?
Rates can change depending on your credit score, down payment and type of loan. Nevertheless, some lenders offer better offers:
- Lennar Mortgage – FHA loans near 4.85% and VA loans around 4.98%.
👉 Suggestion: Make sure to compare at least three lenders before choosing any option. The difference of 0.25% can also save thousands of rupees throughout the period of your loan.
Will Mortgage Rates Go Down in 2025 or 2026?
The big question is whether interest rates will decrease. Experts say that there is less probability of major cuts, but there may be small improvements in the next one or two years.
- Investopedia says rates will likely remain in the mid-6% range through 2025.
- Business Insider suggests buyers may still see 6.5%–7% in 2025, but closer to 6% by 2026.
👉 Translation: The rates will probably not return to 3% or 4% of 2020-21. But there can be some relief by 2026.
Best Mortgage Lenders in 2025
The best lender depends on your needs - you are the first time you are buyers, experienced, or taking refinance. Some names live at the top continuously:
- Rocket Mortgage - Easy Online Procedure, Nice for the first time for buyers (Nard Walate).
- NBKC Bank – Known for low fees and strong customer service.
- Pen Fed Credit Union – Popular with veterans for VA loans.
- Network Capital Funding Corp – Rated as one of the best in 2025 (Consumer Affairs).
- Scotsman Guide – Publishes a verified list of the top lenders (Scotsman Guide).
San Diego Housing Market and Rates
Horticulture rates and house prices are connected to each other. In San Diego, due to limited housing supply, interest rates are high, the prices remain high.
- In luxury areas like La Jolla or Del Mar, buyers are still paying above the county average.
- In areas like Chula Vista or Escondido, buyers are waiting to see if small drops in rates will make monthly payments easier.
According to Wikipedia(Mortgage loan), the U.S. mortgage system links affordability directly to both rates and demand. San Diego is a clear example—strong demand keeps buyers in the market even when rates are high.
Quick Answers
Question | Answer |
Today’s mortgage rates | Around 6.48% (30-year fixed) |
Lowest available rates | About 5.33% (DHI Mortgage) |
2025 forecast | Mid-6% range |
2026 forecast | Closer to 6% |
Top lenders | Rocket, NBKC, PenFed, Network Capital |
Final Thoughts
The hostage rates in San Diego are higher than a few years ago, but not as bad as some people feared. If you are planning to buy a house in 2025, the best strategy is to compare different lenders, and focus on the long-term value of the house.
Waiting for a decline in interest rates cannot always be the best step, especially when the prices of homes in San Diego are still rising. If you get the right house and you can pay it, then it may be prudent to buy now - then if the rates fall in 2026, you can revive later.
For more information, you can see resources like Wikipedia, Realtor.com and Fannie Mae.
