As of early October, 30-year mortgage rates are holding steady at around 6.3%, roughly the same as in early September but well below the 7% levels seen earlier this year. The Federal Reserve made its first rate cut of 2025, lowering its benchmark rate by 0.25%. While the impact on mortgage rates has been limited so far, most experts agree that more rate cuts could be coming before the end of the year.
Inflation continues to edge up slightly, even as stock markets reach new all-time highs. Nationally, consumer confidence remains low, with ongoing concerns about personal finances, employment, and inflation — though higher-income households, buoyed by stock market gains, are generally less affected.
Here in the Bay Area, real estate market trends vary significantly depending on price point, property type, and the influence of the AI boom. Overall, San Mateo and Santa Clara Counties remain among the strongest housing markets in the region. The Q3 2025 median home price for both counties reached its highest third-quarter level ever, and luxury home sales surged 39% year-over-year in September — signaling sustained demand, particularly in the higher-end market.
Meanwhile, San Francisco has seen an astonishing rebound, fueled by its rapidly expanding AI startup ecosystem. Rents are rising faster than anywhere else in the country, and median home prices are up year-over-year, marking a notable turnaround from the softness seen over the past two years.
💡 What This Means for Buyers and Sellers
For homeowners, rising property values and stabilizing rates mean this could be an excellent time to evaluate your equity position or consider upgrading or downsizing while the market remains strong.
For buyers, while competition remains in desirable neighborhoods, softening conditions in some segments — particularly condos — may present opportunities to purchase at more favorable terms before rates shift again.
📈 Want to know how these trends impact your real estate goals?
Schedule a personalized market or home equity consultation with me today — let’s discuss your best strategy in this evolving market.
