The Federal Reserve has a new chair, and mortgage rates have been moving. Kevin Warsh was sworn in as Fed chair on May 22, 2026 [1], and the average 30-year fixed mortgage rate was 7.28% as of October 1, 2026, up from 6.34% a year earlier [2]. Here's what that could mean for San Diego homeowners, buyers and sellers.
In the video above, Whissel Beer Group co-founders Kyle Whissel and Daniel Beer walk through what changed and why it matters for the value of your home.
What changed at the Federal Reserve?
The Fed's new chair wants decisions based on more current data. In July 2026, Warsh said he hopes the Fed will be using real-time economic data within nine to 12 months, instead of relying only on government reports that are often revised later, and he announced five new task forces, including one focused on new data sources [3].
Does the Fed set mortgage rates?
Not directly. The Fed sets a short-term interest rate. 30-year mortgage rates follow longer-term bond markets and expectations about inflation, so they respond to what the Fed does and signals, but they can move before, after, or even against a Fed decision.
What do higher rates mean for a San Diego home?
Rates change the monthly payment more than most buyers expect. The median residential sale in San Diego County was $890,000 from October 2025 to September 2026 [4]. Here is the estimated principal and interest on that home with 20% down:
| 30-year fixed rate | Loan amount | Est. monthly principal and interest |
|---|---|---|
| 6.34% (week of Oct 2, 2025) | $712,000 | $4,426 |
| 7.28% (Oct 1, 2026 average) | $712,000 | $4,872 |
That is about $446 more a month for the same home. Estimates exclude taxes, insurance and HOA dues; your own rate depends on your credit, down payment and loan type.
Should I wait to buy or sell?
It depends on your plans, your home and your neighborhood. Nobody can promise where rates go next. What a team agent can do is show you what homes like yours are selling for right now, what today's rates mean for your budget, and what your options look like if rates move either way. Whissel Beer Group closed 1,042 transactions in 2025, so we see how the San Diego market is reacting week to week.
Ask a Team Agent What This Means for You
- Own a home? Find out what your home is worth today.
- Buying? Talk with a team agent about your budget.
- Questions? Call 619-815-5589. We're happy to go deeper on anything here.
Frequently Asked Questions
Will mortgage rates go down under the new Fed chair?
No one can say for sure. Mortgage rates depend on bond markets and inflation, not just the Fed. As of October 1, 2026, the average 30-year fixed rate was 7.28% [2]. A team agent can help you plan for rates moving either way.
Does the Fed change affect my San Diego home's value?
Indirectly. Rates affect what buyers can afford, which affects demand and prices. The best way to know where your home stands is a current valuation based on recent San Diego sales.
Should I wait for rates to drop before buying in San Diego?
Waiting can mean a lower rate, or higher prices and more competition if rates fall and buyers return. A team agent can run the numbers for your situation.
Sources
- Board of Governors of the Federal Reserve System, press release on Kevin Warsh's swearing-in, May 22, 2026.
- Freddie Mac, Primary Mortgage Market Survey, week of October 1, 2026.
- Reuters, "Fed's Warsh plans to harness better economic data within a year", July 1, 2026.
- SDMLS closed residential sales, San Diego County, October 1, 2025 to September 30, 2026, pulled October 7, 2026.
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