Mortgage rates are finally moving in the right direction—sparking fresh energy in the housing market. Across North County San Diego, buyers are jumping back in, and the numbers prove it: mortgage applications are up 23% compared to this time last year, according to the Mortgage Bankers Association.

That surge in demand is the strongest we’ve seen since July, and it’s reshaping the market from Carlsbad to Encinitas and beyond. If you’ve been waiting for the right moment to list—or if your home recently sat unsold while the market slowed—now may be your best window. Buyers are out, motivated, and ready to make a move in North County.

When Rates Drop, Buyers React

Here’s what’s happening. The 30-year mortgage rate dropped to 6.13% earlier this week. And that’s the lowest it had been since October 2024. That decline followed weak job growth and other economic indicators that are fueling speculation that the Federal Reserve may cut the Federal Funds Rate multiple times this year. Mortgage rates started dropping because financial markets are anticipating those Fed decisions. And that opens the door for more buyers to act.

Since today’s buyers are looking at every angle to make home purchases more affordable, they’re much more sensitive to even the slightest movement in mortgage rates. Basically, it boils down to this. As affordability improves, so does buyer demand (see graph below):


And that’s a change you’re going to feel – in a good way. Since about this time last year, we’ve been in a plateau of “limited” buyer demand. But now that rates are coming down, buyer demand is getting better.

What This Means for You

If you’re thinking about making a move in North County San Diego, now’s the time to get serious about the market—and how to use this moment to your advantage. Maybe your listing expired earlier this year without offers, or you held off on selling because buyers seemed scarce. Consider this your signal: buyers are coming back.

This isn’t the same frenzied surge we saw a few years ago, but it is a window of opportunity. Listing now, while demand is climbing and before other homeowners in your neighborhood catch on, could give you a crucial edge. The more you wait, the more likely it is you’ll face increased competition as other sellers jump in.

The smart move? Partner with trusted local experts who know this market inside and out. Shafran Realty Group agents specialize in North County San Diego real estate, and they’ll help you price strategically, position your home to stand out, and connect with motivated buyers who are ready to act today.

Bottom Line

Buyers are watching rates closely, weighing their options, and many are finally stepping off the sidelines. If you’re thinking about selling in North County San Diego, this could be your best chance to get ahead of the curve.

To make sure your home shows up for the right buyers at the right time, partner with the local experts who know this market best. The Shafran Realty Group has helped countless North County sellers navigate shifts like this—positioning their homes to stand out and sell strong.

Let’s connect today and walk through the steps together, so you don’t just list your home—you maximize this moment.