San Francisco Real Estate 2025: Housing Prices, Interest Rates, and Rental Rules to Watch

Federal Reserve Lowers Interest Rates: Impacts on Mortgage Rates in 2025

The Federal Reserve recently cut its benchmark interest rate by a quarter percentage point, bringing the central bank’s overnight rate to 4–4.25%. This adjustment, the first in nine months, has already contributed to a decline in mortgage rates, which fell to an 11-month low of 6.35% according to Freddie Mac. While mortgage rates typically follow long-term bond yields rather than the Fed directly, homebuyers in San Francisco and across the Bay Area may see slightly lower borrowing costs in the short term.

Economists caution that while the rate cut benefits potential buyers, rates remain above 6%, and further fluctuations are possible depending on inflation and economic conditions. For those considering a move, this development could make homeownership slightly more accessible, but staying informed on current rates is essential. Explore our full list of San Francisco and Bay Area listings to see what’s available in the current market.

How San Francisco’s Short-Term Rental Rules Could Impact World Cup Visitors

When the 2026 FIFA World Cup kicks off across North America next year, the Bay Area will be one of the global soccer hotspots, but San Francisco’s strict short-term rental laws could make finding a place to stay a challenge.

Under the city’s current rules, short-term rentals are only allowed if a permanent resident lives in the home for at least 275 days a year. That means many Airbnb and Vrbo listings aren’t an option, limiting the number of vacation rentals available. For an event as massive as the World Cup which is expected to draw millions of visitors, that shortage could drive up hotel rates and push soccer fans to look for lodging in nearby cities with looser rules, like Oakland, Berkeley, or Marin County.

Some host cities in other parts of the country may temporarily relax their short-term rental restrictions for the tournament. Whether San Francisco follows suit remains to be seen, but the decision could have a major impact on where visitors stay, how much they pay, and how the city benefits from the influx of tourism dollars. Read More Here!

Young Homebuyers Are Hoping for Lower Rates but It Might Not Happen

A lot of Gen Z and millennial homebuyers are crossing their fingers that mortgage rates will drop soon so they can refinance and lower their monthly payments. According to a new survey from Truework, about two thirds of younger buyers say refinancing is key to their financial future, which is about twice as many as baby boomers who feel the same way.

The catch is that most experts do not think big rate cuts are coming anytime soon. While we might see a small drop later this year, it is unlikely we will get back to the rock bottom rates we saw before 2022. That means many young buyers could be stuck paying today’s higher rates for years longer than they expected.

Making things tougher, home prices have jumped 31% since 2020, and starter homes now cost around $250,000, way up from $95,000 in 2012. Meanwhile, a lot of baby boomers are staying put. Many already paid off their homes or locked in super low rates, so they have little reason to sell.

The end result is that older homeowners are holding onto most of the housing supply, while younger buyers face high prices, fewer options, and no guarantee of lower rates ahead. Read More Here!