At its June 18 meeting, the Fed paused interest rate changes (4.25%–4.5%) but left room for future cuts. Mortgage rates remain range-bound in the high‑6% zone. No fireworks, but little relief for buyers aiming to lock in lower rates.
At this meeting, the FOMC also released their summary of economic projections, which predicted the year’s median Federal funds rate to be 3.9 percent. This means a rate cut could be in the cards for later in the year, but no-one knows when.
According to Redfin’s latest data, down payments are holding steady around 15% of the purchase price, but there’s more to the story.
Even with home prices inching up, the dollar amount of down payments is actually slipping. Why? Not every buyer puts money down, and more are leaning into creative financing to get in the game.
Some key takeaways from April:
- All-cash deals made up 30.7% of sales, slightly down from last year. (San Diego is slightly lower OVERALL, but when looking at micro markets like Rancho Santa Fe or Del Mar we see cash purchases 40+%)
- Conventional loans still lead, used in 77.5% of financed purchases.
- FHA and VA loans are gaining traction. FHA made up 15.3% of mortgage deals (up from 14.2%), and VA hit 7.2%—its highest April share since 2020.
What it means
Buyers are cautious but flexible. That slight down payment dip shows many are stretching to make it work, especially first-timers using FHA or VA options. And all-cash deals are still strong, mostly driven by equity-rich buyers trading up or relocating.
The bigger picture? It’s not just what someone offers, it’s how they’re structuring the deal that counts.
1 Tip or Thought
Don't Price for the One Unicorn Sale
We just helped a seller navigate this exact trap. They saw the highest-ever sale in their neighborhood, a $1.4M townhouse with four bedrooms and the biggest yard in the community... and wanted to match that price.
Here’s the thing: their home is beautiful, but it’s not that one. It's smaller, less bedrooms, much smaller yard, not as updated.
Another agent told them what they wanted to hear and pulled the same comps we did. But none of those comps actually supported $1.4M. Not on price per square foot, not on layout, not on lot size.
We were honest. We talked through the data, shared what’s happening right now in the market, and showed how active we are in it—while the other agent had sold three homes in the past two years, our team is closing 3 to 5+ a month. That matters when the market is shifting weekly.
They hired us. We priced it right. And even before going live this weekend, we already had strong interest and multiple showings lined up.
Bottom line: It’s not about pricing for the dream. It’s about pricing for this market and letting the strategy do the heavy lifting.
