Mexico Real Estate Market Report – September 2025
As your trusted source for luxury real estate in Mexico, we want to keep you informed about the latest developments that could impact your buying decisions.
For U.S. and Canadian buyers, Mexico’s property market is entering a unique window of calm. With tariffs on hold, a stable peso, and steady mortgage rates, this is a strategic moment to secure prime real estate in Mexico’s most desirable destinations.
Key Highlights:
- Tariffs paused — no impact on property purchases
- Peso stable at ~18.74 MXN/USD
- U.S. mortgage rates holding near 6.7%
- Banxico eases rate to 7.75% — positive for developers and buyers
Mortgage Rates: Calm and Competitive
- U.S. Primary Residence Rates: ~6.7% APR (30-year fixed average)
- Second Homes & Investment Properties: Typically 0.5% to 1% higher than primary rates
- Canadian Mortgage Rates: Holding steady, with an average 5-year fixed near 5.3%
- Mexico Financing: Most foreign buyers still purchase in cash or finance in the U.S. or Canada, as Mexican mortgages for non-residents remain limited.
Why this matters:
With the U.S. Federal Reserve holding rates steady, the Bank of Canada keeping policy unchanged, and Banxico recently trimming its rate to 7.75%, financing conditions remain predictable and favorable for cross-border buyers.
Where Buyers Are Investing Now
Mexico’s luxury coastal markets remain the top choice for U.S. and Canadian investors. Inventory in high-demand destinations is tightening, and turn-key, rental-ready properties are selling fastest.
Top Lifestyle Markets to Watch:
- Riviera Nayarit — Boutique luxury & wellness hubs like San Pancho and Sayulita
- Punta Mita — Exclusive resorts, golf, and branded residences
- Los Cabos — Consistent rental yields & high-end oceanfront estates
- Tulum & Riviera Maya — Eco-luxury villas, growing STR demand
Why Now is The Time to Act
With exchange rates stable, tariffs on pause, and financing conditions favorable, this is a rare window for U.S. and Canadian buyers to secure prime Mexico real estate before potential shifts later this year.
Special Feature: Possible U.S. Rate Cuts Could Boost Mexico Real Estate
If the Federal Reserve lowers interest rates, it could create a big opportunity for U.S. and Canadian buyers in Mexico.
- Cheaper Financing: U.S. mortgage rates, now around 6.7%, could drop, making second-home and investment property loans more affordable.
- Stronger Dollar: A rate cut often boosts USD strength, giving buyers more pesos per dollar and lowering effective costs in Mexico.
- Better Developer Deals: If Mexico’s central bank follows with rate cuts, developers may offer longer payment plans and more attractive financing.
- Higher Demand Ahead: Lower borrowing costs could drive more U.S. buyers to popular markets like Riviera Nayarit, Punta Mita, Los Cabos, and Tulum, pushing prices up over time.
Bottom Line:
Lower U.S. rates would make buying in Mexico more affordable, but also more competitive. Acting early helps secure the best pricing and inventory before demand accelerates.
