Mortgage refinance applications have more than doubled compared to last fall, as San Diego homeowners jump on the opportunity created by falling interest rates.

According to the Mortgage Bankers Association, refinance applications surged 111% year-over-year as of October 24, marking one of the biggest jumps in recent memory. Weekly applications rose another 9%, fueled by rates hitting their lowest averages in roughly a year.

As of this week, Freddie Mac reports the average 30-year fixed-rate mortgage at 6.19%, while 15-year loans — popular among those refinancing — average 5.44%. It’s the fourth straight week of declines, and that steady dip is sparking renewed activity across the country, including right here in San Diego County.

What’s Driving the Refinance Boom?

Homeowners with larger loan balances are leading the charge, says Joel Kan, deputy chief economist at the Mortgage Bankers Association:

“Borrowers with larger loan sizes continue to be sensitive to rate movements.”

With home values across San Diego still holding strong, many homeowners are leveraging this window to lower their payments, access equity, or shorten loan terms.

Purchase Demand Also on the Rise

The trend isn’t limited to refinances. New mortgage purchase applications are up 20% from last year, signaling growing confidence among buyers who had been sitting on the sidelines through higher-rate months.

Economists from Wells Fargo note that this shift suggests home sales — both new and existing — should continue trending positively. San Diego’s resilient job market and steady population growth make it one of the nation’s most stable housing regions, even amid shifting national trends.

The Wild Card: The Federal Reserve

While the Federal Reserve is expected to cut its benchmark rate soon, experts caution that mortgage rates may not drop much further. Matthew Graham, COO of Mortgage News Daily, explains that other Fed commentary will determine which way rates move next.

“Rates are already low today. The Fed rate cut won’t make them go any lower,” he said. “Other info from the Fed could make them go either higher or lower, depending on what’s said.”

What This Means for San Diego Homeowners

For now, the takeaway is clear: refinancing opportunities have returned, and buyer activity is slowly picking up. However, affordability challenges and lingering economic uncertainty may keep the market from experiencing another post-pandemic surge.

Still, for San Diego homeowners, this could be the ideal moment to review mortgage options or connect with a trusted lender. Whether you’re looking to refinance, purchase, or explore your equity, taking advantage of today’s lower rates could make a meaningful difference.