SAN DIEGO (KGTV) — Krystiana Ruddle just bought a home in Lakeside. She says it’s perfect for her husband, three kids, and two cats. But there’s a catch her mortgage rate is a whopping 7.75%.
“Honestly, I still look back and wonder how or why I went through with it," Ruddle said. "But really it’s just the hope that it’s going to come down in the future.”
Ruddle’s hopes could soon become reality. This week, the chairman of the federal reserve said they will cut rates next year. I spoke to one San Diego mortgage broker who expects rates to drop by 1.5%.
“How much per month would you be saving?”
“It could be almost a thousand dollars difference per month,” Ruddle said.
Ruddle plans to refinance at the end of next year for a better rate. Mortgage broker Brendan Bracken says many recent homebuyers will do this, but advises them to hold off a little longer.
“There will be opportunities in 2024 but we think it’ll get better in 2025,” said Brendan Bracken, VP of Western Division with People's Mortgage.
Realtor Brad Michels says this puts San Diego on the map for home sales next year.
“I think that’s going to put a big demand on our market in San Diego," Michels said. "There are a lot of people who want to still buy homes,”
It’s also a relief for San Diego homeowners.
“It’s absolutely going to make a huge difference to be able to put away fro the future for both myself and my family,” Ruddle said.
