Mortgage Rates Drop to a One-Year Low—Here’s What It Means for South Bay Real Estate

Real Estate News September 18, 2025

Mortgage Rates Are Dropping—Here’s the Latest Data

Recent reports from Freddie Mac’s Mortgage Market Survey show the 30-year fixed mortgage rate averaging 6.26% as of September 18, 2025, down from 6.35% just a week earlier. Freddie Mac+2Stock Titan+2
Refinancing activity has surged, making up nearly 60% of all mortgage applications—the highest level since early 2022. Freddie Mac+1

Mortgage News Daily also confirms rates trending near their lowest since late 2022 / October 2024, influenced by shifts in the bond market and anticipation of Fed policy moves. Mortgage News Daily+2Mortgage News Daily+2

What This Means for Buyers in South Bay

Greater purchasing power: A modest drop in interest may allow buyers to afford more home for the same monthly payment, especially in high-cost areas (Redondo Beach, Palos Verdes, etc.).
Better refinance options: With rates down, many existing homeowners may benefit by refinancing to reduce their payment or shorten loan terms.
Act sooner: Given historical patterns, markets often tighten when rates drop. Inventory may begin moving more quickly.

What It Means for Sellers

More qualified buyers: Lower borrowing costs widen the pool of those who can afford homes.
Potential for stronger offers: As demand picks up, especially in desirable neighborhoods, homes may get multiple offers.
Timing is key: Listing while rates are attractive can be advantageous, especially entering the fall/winter period when activity sometimes slows.

Broader Economic Context

The recent drop in the 10-year Treasury yield is one of the drivers behind falling mortgage rates. Mortgage News Daily+2Mortgage News Daily+2
The Federal Reserve has already cut the federal funds rate, and has signaled that further cuts may follow—which markets are pricing in. Financial Times+2AP News+2
However, inflation pressures remain volatile, meaning rate volatility could return. Sellers and buyers must plan for both upside (rates rising) and downside.

South Bay Snapshot

Coming from local market trends, Accardo Real Estate Associates sees:

Increased showings in Hermosa, Manhattan Beach, Redondo as buyers respond to better financing.
Sellers in Torrance / Rancho Palos Verdes seeing renewed interest for homes that had been sitting.
Inventory in many neighborhoods remains limited, meaning well-positioned homes are more likely to stand out.

Strategies for South Bay Buyers & Sellers

Buyer Strategy	Seller Strategy
Get pre-approved now to lock in a rate.	Consider pricing a bit competitively to attract multiple showings.
Explore local lenders & programs to reduce closing costs.	Stage and market homes early—good photos, virtual tours work.
If renting, compare monthly payments of buying now vs waiting.	Be ready to price reactively if comp data shifts quickly.

Sources & Further Reading

Freddie Mac, Mortgage Rates Continue to Move Down — showing 30-yr fixed at ~6.26% and refi share nearly 60% Freddie Mac+1
Mortgage News Daily, Mortgage Rates Near 3-Year Lows Ahead of Fed Mortgage News Daily
Finance Yahoo, Mortgage & refinance interest rates today (Sept 18) with updated fixed rate numbers Yahoo Finance
Themortgagereports.com, Mortgage rate predictions & trends for 2025 with forecast data The Mortgage Reports

Partner With a Local Expert

Accardo Real Estate Associates is deeply embedded in the South Bay market. Whether you want data-backed advice or someone to walk you through timing, pricing, negotiation, and staging—we deliver.

📞 Contact us today to schedule your personalized consultation.