New! Companion Units can now be processed over-the-counter. Detached one-story units, additions and conversions of garages or accessory structures all qualify. You can also submit permit-ready, no-cost building plans from the County of San Diego.  

 US Mortgage Interest Rate News

The average 30-year fixed mortgage rate in the U.S. has risen slightly to 6.67% as of March 20, 2025, from 6.65% the previous week, according to Freddie Mac. This marks the second consecutive week of modest increases, though rates have generally been declining since mid-January.

• Current Rates: The average 30-year fixed mortgage rate is 6.67%, up slightly from 6.65% the previous week.
• 15-Year Fixed Rates: The average rate on 15-year fixed-rate mortgages also rose to 5.83% from 5.80% last week.
• Recent Trends: Mortgage rates have been mostly declining since mid-January, following the 10-year Treasury yield, which has fallen due to economic concerns and the impact of tariffs.
• Fed Decision: The Federal Reserve kept its benchmark interest rate unchanged at 4.25% to 4.50% on March 19, 2025, and signaled it expects to cut rates twice this year.
• Housing Market Impact: Despite the slight increase, rates have stayed under 7% for nine consecutive weeks, which is beneficial for potential homebuyers and sellers as the spring homebuying season ramps up.

• Sam Khater, Freddie Mac’s Chief Economist: "The 30-year fixed-rate mortgage has stayed under 7% for nine consecutive weeks, which is helpful for potential buyers and sellers alike."
• Mike Fratantoni, Chief Economist at the Mortgage Bankers Association: "In the near term, we expect mortgage rates to remain in a fairly narrow range, between 6.5% and 7%, which should support the spring housing market."

• Inflation and Tariffs: Concerns about inflation and the economic impact of tariffs are influencing mortgage rates. Tariffs can drive inflation higher, which could push up mortgage rates.
• Economic Growth: The Fed's decision to keep rates steady and its projection for economic growth are influenced by factors such as tariffs and policy uncertainty.

• Rate Cuts: The Fed expects to cut rates twice this year, which could further influence mortgage rates and the housing market.
• Housing Market: The U.S. housing market has been in a sales slump since 2022, with sales of previously occupied homes down from the previous year.

These developments suggest that while mortgage rates have seen a slight uptick, they remain relatively stable and supportive of the spring homebuying season.

San Diego's real estate market is showing steady growth into 2025, with median home prices reaching $1,030,000 in January 2025, reflecting an 11.4% increase year-over-year. Despite elevated mortgage rates, the market is resilient, with San Diego outperforming the state, up 4.6% compared to January of the previous year.

According to Zillow's forecast, San Diego is expected to see a 0.1% increase in home values by January 31, 2025, followed by a slightly higher 0.6% increase by March 31, 2025, and a 3.6% increase by the end of 2025. The market is not anticipated to crash, but rather to continue a slow but steady increase.

San Diego's housing market remains strong, with increasing home values and steady demand. The average home is currently priced at $935,237, and homes are selling in around 27 days on average. Active listings are available, and sales price data as of November 30, 2024, shows a 4.3% increase in the average home value over the past year.

The market is characterized by high demand and limited supply, driven by San Diego's desirable location, strong local economy, and vibrant lifestyle. Interest rates, inventory levels, economic growth, and population growth are key factors influencing the market.

San Diego's allure is undeniable, with its pristine beaches, perfect weather, and vibrant city life attracting residents and retirees. However, the limited developable land and finite housing stock create a competitive seller's market, pushing prices upwards.

For those considering buying or selling, it is recommended to keep an eye on these projections and consult with a local real estate expert to make informed decisions.

California is confronting an unprecedented "triple threat" of escalating housing prices, interest rates, and insurance premiums, exacerbated by the recent devastating fires in Los Angeles County.

Redfin CEO Glenn Kelman highlights that this confluence of challenges is unparalleled, with the fires alone causing an estimated $28 billion in insured losses and $150 billion in total damages.

The state's stringent land-use and environmental regulations have historically hindered development, but the pressing need for reconstruction may prompt a reevaluation of these policies. Governor Gavin Newsom and LA Mayor Karen Bass have pledged to expedite rebuilding efforts by reducing bureaucratic obstacles.

• While this initiative aims to address the housing crisis, Kelman cautions that the character of many neighborhoods may change due to increased density in the rebuilding process.

The U.S. Economy Added Fewer Jobs Than Expected, But the Job Market Remains Strong

By Brooklee Han | February 7, 2025 | 9:46 AM

The January jobs report delivered mixed news for those hoping the Federal Reserve would cut interest rates in March. According to data released Friday by the U.S. Bureau of Labor Statistics (BLS), the U.S. economy added 143,000 nonfarm payroll jobs compared to the previous month—falling short of projections.

Economists point to severe winter storms in the East and South, as well as wildfires in Los Angeles, as key factors slowing job growth. Despite this, the overall job market remains resilient.

"At first glance, on net, these data indicate a job market that remains reasonably strong," said Mike Fratantoni, SVP and chief economist at the Mortgage Bankers Association (MBA). "Job growth over the past three months has averaged a gain of 237,000, likely above what can be sustained this year."

Despite the modest job gains, unemployment edged down slightly to 4.0%, with 6.8 million people currently unemployed. The figures suggest that the labor market continues to exhibit strength, even as growth slows.

The largest job gains in January came from:

• Health care: +44,000 jobs
• Retail trade: +34,000 jobs
• Social assistance: +22,000 jobs

On the other hand, job losses were seen in the following sectors:

• Mining, quarrying, and oil & gas extraction: -8,000 jobs
• Residential specialty trade contractors: -2,100 jobs

The construction sector saw a modest increase of 4,000 jobs, with residential construction adding 1,900 jobs. The real estate industry also posted a modest monthly gain of 3,600 jobs.

The job report presents a mixed outlook for the housing market. More jobs in high-wage sectors and rising earnings could boost confidence among prospective home buyers as the spring housing market approaches.

"Although today’s job report is generally positive, it actually offers up a mixed bag for the housing market," said Lisa Sturtevant, chief economist at Bright MLS. "With employers still adding jobs at a healthy pace and inflation above the Fed’s 2% target, the central bank is likely to keep interest rates unchanged at its meeting in March, which means mortgage rates could remain in the high 6% range heading into spring."

The Federal Reserve's next move remains uncertain. Fratantoni and the MBA anticipate that the Fed will implement, at most, one more rate cut in this cycle. With inflation still above target and job growth steady, mortgage rates are expected to remain elevated for the foreseeable future.

Stay tuned for more updates on the job market and its impact on the housing sector.

The Impact of California Wildfires on Homeowners Insurance

California has been grappling with increasingly destructive wildfires, leaving behind not only physical devastation but also significant financial repercussions for homeowners. Among the various challenges, the wildfires are reshaping the landscape of homeowners insurance in the state. Here’s a closer look at how these natural disasters are affecting coverage and costs for residents.

Rising Premiums and Limited Availability
The frequent and intense wildfires have driven up insurance premiums across California. Insurers calculate rates based on risk, and the growing wildfire threat has resulted in higher costs for homeowners in vulnerable areas. Some residents have seen their premiums double or even triple in recent years.

In extreme cases, insurance companies have declined to renew policies altogether. Areas classified as high-risk for wildfires have experienced a sharp reduction in available coverage options, leaving many homeowners scrambling for alternatives.

The Role of the FAIR Plan
For those unable to secure insurance through traditional providers, the California FAIR Plan—a last-resort insurance pool—has become a critical option. However, this plan only offers limited coverage, requiring homeowners to purchase supplemental policies to fully protect their homes and belongings. This piecemeal approach often results in even higher overall costs.

Increased Underwriting Scrutiny
Insurance companies are adopting stricter underwriting guidelines to manage their exposure to wildfire risk. This includes assessing factors such as proximity to fire-prone areas, defensible space around the property, and the materials used in construction. Homeowners are now under pressure to implement fire mitigation measures, such as clearing brush, installing fire-resistant roofing, and using ember-resistant vents, to improve their insurability.

State Interventions and Regulatory Actions
Recognizing the growing crisis, California’s Department of Insurance has taken steps to protect homeowners. Recent measures include a temporary moratorium on policy cancellations in wildfire-affected areas and requirements for insurers to consider fire mitigation efforts when determining coverage eligibility and rates. While these policies provide some relief, they are not long-term solutions to the underlying challenges.

The Financial Burden on Homeowners
The cumulative effect of rising premiums, stricter requirements, and limited availability is placing a heavy financial burden on homeowners. Many are forced to choose between paying exorbitant rates, relocating to lower-risk areas, or risking underinsurance. The affordability crisis is particularly acute in rural and middle-income communities, where resources to adapt to these changes may be limited.

Looking Ahead
The intersection of natural disasters, wildfire risk, and homeowners insurance is a complex and evolving issue. While state interventions and fire mitigation efforts may offer some relief, the long-term solution lies in addressing the root causes of these disasters and improving community resilience. Until then, California homeowners will continue to navigate an increasingly challenging insurance landscape.

Real estate title fraud, also known as deed fraud or property title fraud, occurs when someone illegally transfers the ownership of a property without the true owner’s knowledge or consent. This type of fraud can allow a criminal to take out loans against the property, sell it, or otherwise assume control over it, often leaving the rightful owner unaware until they encounter issues, like foreclosure notices, unpaid bills, or when they attempt to sell or refinance.

1. Forgery of Documents: The fraudster forges documents, often by using fake IDs, to impersonate the owner.
2. Filing Fake Title Documents: These forged documents are then filed with a government office or recorder’s office, which changes the title records.
3. Taking Financial Actions: With the fraudulent title in hand, the criminal might take out a mortgage or sell the property, pocketing any funds obtained.
4. Owner Discovery: Often, the rightful owner only finds out after receiving unusual correspondence, like mortgage bills, foreclosure notices, or other irregularities.

• Receiving unexpected bills or mail regarding unfamiliar loans or property taxes.
• Notices from banks, lenders, or the government about changes on the property title.
• Difficulty refinancing, selling, or accessing your own property records.

• Title Insurance: This insurance can help protect against financial losses resulting from title fraud.
• Regular Property Record Checks: Periodically checking public property records can help catch changes in ownership.
• Monitor Credit Reports: Many times, fraudulent loans will impact the owner’s credit, so regular monitoring is beneficial.
• Consider Legal Alerts or Services: Some legal services or title monitoring companies offer alerts for any changes made to property titles.
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Real estate title fraud can be complex and difficult to resolve, and prevention is often more effective than trying to recover after fraud has occurred.

California tenants will now have double the time to respond to eviction notices under a new law signed by Gov. Gavin Newsom. Assembly Bill 2347 extends the response period from five to ten business days, giving tenants more flexibility when facing legal challenges during an eviction process. However, landlords argue that this extension could exacerbate existing problems for property owners, particularly when tenants already owe significant amounts of back rent. The law comes at a time of heightened concern for landlords dealing with the aftermath of pandemic-era tenant protections, which led to a surge in unpaid rent and evictions.

Under the current system, landlords must serve tenants with an unlawful detainer notice when seeking eviction, and tenants had five business days to respond. Landlords argue that this timeline is crucial in resolving cases quickly, especially since the process often begins after tenants have already missed rent payments for several months. While tenant advocates argue that the original deadline was too short, property owners like San Francisco real estate attorney Daniel Bornstein emphasize that the eviction process can already take months and that any delay means more financial strain for landlords, who may not see any rent during this extended period.

Though the California Apartment Association did not officially oppose the bill, local landlord groups have voiced concerns. They argue that longer response times lead to unpaid rent piling up, which ultimately gets passed on to new tenants, contributing to increased rent prices. From the landlords' perspective, the law could worsen the financial burden they bear, especially for those who rely on rental income for their livelihoods. They point out that the eviction process is already heavily regulated and extending deadlines without compensating property owners only adds to their losses.

The new law, sponsored by Democratic Assemblymember Ash Kalra, also impacts legal procedures by shortening the time attorneys have to file certain motions regarding errors in a landlord’s eviction complaint. While tenants will benefit from more time to respond, landlords see this adjustment as a mixed bag—allowing the eviction process to move faster at certain stages, but still prolonging the initial response phase, which could delay resolution.

In addition to this new law, landlords have had to navigate a growing number of local regulations that often favor tenants. San Francisco, for instance, passed an ordinance in 2022 giving tenants extra time to fix issues before an eviction case could be filed. However, a state appeals court recently overturned that measure, reinforcing the need for a balanced approach to eviction laws. Landlords continue to advocate for policies that protect their interests while ensuring tenants meet their rental obligations in a timely manner.

Home prices reached their highest level in the history of the S&P CoreLogic Case-Shiller U.S. National Home Price Index. The mark came in spite of rising mortgage interest rates that have slowed activity.

The data, released by S&P on Tuesday, determined the average price over a three-month period from April to June, showing that prices nationally were 5.4% higher compared to the same end-month the previous year. 

While it may be a record-high for home prices, the annual gain was lower than the 5.9% in May.

The average home prices in the 10-city composite increased by 7.4% annually. The figure was down from the previous month's 7.8%. On the other hand, in a 20-city composite, the rate was 6.5% higher year over year, which was actually down from May's increase of 6.9%, CNBC reported. 

"The upward pressure on home prices is making this the most unaffordable housing market in history," said Bright MLS chief economist Lisa Sturtevant.

"First-time and moderate-income home buyers, in particular, increasingly are being left out of the housing market," she said in NY Post.

In a release, Brian Luke, head of commodities, real and digital assets at S&P Dow Jones Indices, stated that the gap between housing and inflation is larger.

"While both housing and inflation have slowed, the gap between the two is larger than historical norms, with our National Index averaging 2.8% more than the Consumer Price Index," said Luke.

"That is a full percentage point above the 50-year average. Before accounting for inflation, home prices have risen over 1,100% since 1974, but have slightly more than doubled (111%) after accounting for inflation," he added further.

Out of the 20 cities, it was New York that showed the highest annual gain. 

Prices in NY rose up to 9% in June. Next was San Diego with an annual increase of 8.7%. Next to San Diego was Las Vegas, which showed 8.5%.

Home values were also shown by price tier in the most recent report. By perusing the large markets over the past five years, it discovered that 75% of the markets showed that low-price tiers rise faster.

"New York's low tier has the largest five-year out-performance, rising nearly 20% above the overall New York region," Luke said in the release.

 Current Mortgage Rates

• 30-Year Fixed Mortgage Rate: Dropped to 6.06% from 6.37% last week.
• 20-Year Fixed Mortgage Rate: Fell to 5.70%, down 41 basis points.
• 15-Year Fixed Mortgage Rate: Reduced to 5.34%, a 32-basis-point drop from last week.
• 5/1 Adjustable-Rate Mortgage (ARM): Decreased to 6.18%, a drop of 17 bps.
• 7/1 ARM: Now at 6.15%, down 27 bps.
• 30-Year FHA Loan: Slightly decreased to 5.41%, down 9 basis points.
• 30-Year VA Loan: Reduced to 5.28%.
• 15-Year VA Loan: Dropped to 4.60%, a significant decline of 60 basis points.
• 5/1 VA ARM: Now 5.79%, a 19-bps reduction.

• Federal Reserve Expectations: The Federal Reserve is anticipated to cut the federal funds rate in its September meeting. There is speculation that the Fed may cut sooner.
• Advice on Timing: For those aiming for the lowest possible mortgage rates, it might be wise to wait until late 2024. However, with current rates already showing substantial decreases, it could be a good time to buy a home now. Waiting might lead to increased home prices and competition.

• Impact of Rates on Buying: Lower mortgage rates now could lead to increased home prices and competition later if the market heats up. Buyers might find that purchasing sooner rather than later could be  ideal.
• Calculators and Tools: Using mortgage calculators can help in understanding how different rates and terms will affect monthly payments, providing a clearer picture.

• Rate Locking: It's challenging to predict the optimal time for locking in a mortgage rate as rates fluctuate daily. Locking in a rate early can help in budgeting and financial planning.
• Qualifying for Lower Rates: To secure the lowest mortgage rates, it’s beneficial to have a strong credit score, a significant down payment, and a low debt-to-income ratio.

In summary, the current decrease in mortgage rates offers an opportunity for both new homebuyers and those looking to refinance. While future rate cuts might be possible, the current rates are competitive and may warrant action sooner rather than later.

Apply Now with Allan Paranada

Accessory Dwelling Units (ADUs) have been gaining popularity in San Diego and many other areas across the United States for several reasons:

1. Increased Housing Options: San Diego, like many other urban areas, faces housing shortages and high housing costs. ADUs offer a way to increase housing options within existing residential areas without the need for large-scale development projects.
2. Additional Income: Homeowners can benefit financially from ADUs by renting them out to tenants. This additional rental income can help offset mortgage payments or provide supplemental income.
3. Multigenerational Living: ADUs provide an opportunity for multigenerational living arrangements, allowing families to accommodate elderly parents, adult children, or other relatives while still maintaining some degree of privacy and independence.
4. Flexibility: ADUs can serve various purposes, including rental units, guest houses, home offices, or even personal living spaces for homeowners. This flexibility appeals to homeowners looking to maximize the utility of their property.
5. Zoning Regulations: Changes in zoning regulations and permitting processes in San Diego and other areas have made it easier for homeowners to build ADUs. Relaxing restrictions on ADU construction has encouraged more homeowners to consider adding these units to their properties.
6. Environmental Benefits: ADUs can promote sustainability by utilizing existing infrastructure and reducing the need for new construction. They also offer opportunities for energy-efficient design and can contribute to more compact, walkable neighborhoods.

We at Fidelis Private Fund have been financing ADU projects since the the demand to finance such projects started gaining popularity a few years back. This trend aligns with our commitment to providing innovative financing solutions that support sustainable and affordable housing initiatives.