As of early October, 30-year mortgage rates, at about 6.3%, were essentially unchanged from early September (but well down from 7% in early 2025): The Fed’s first 2025 reduction of its benchmark rate, of .25%, had little effect, though consensus opinion is that further cuts are probably coming before the end of the year. Inflation continued to tick up slightly, while stock markets hit new all-time highs. Nationally, consumer confidence remained low, with significant concerns regarding personal finances, employment and inflation – though affluent consumers deeply invested in stock markets were less concerned than low and middle income segments.
Bay Area real estate markets have been seeing widely varying conditions and trends by price segment, property type, level of affluence, and perhaps most of all, by whether they’re being significantly impacted by the AI boom. Generally speaking, San Mateo County is on the positive side of all those factors and criteria, and remains one of the strongest markets in the Bay Area and the country. The Q3 2025 median house sales price was its highest Q3 price ever, and the number of luxury home sales in September rose 39% from September 2024.
October sales data will give us further insight into the autumn selling season and market direction, before activity typically begins to slow down in November for the mid-winter holidays.
