The rain clouds have basically passed, and so has most of the muggy stickiness that kept you from needing layers the last couple nights. You're in for a pretty pleasant weekend with typical weather for the season early clouds/fog giving way to afternoon sun and highs around 70.
The lows are actually going to remain quite high all weekend, with temperatures only dropping 10 degrees, to 60, at night. As the Chronicle reports, via the weather service, there was a record-high low of 69 degrees early Thursday recorded at SFO, which is five degrees warmer than the previously record highest low for that date of 64 degrees in 2010.
This means that Folsom Street Fair should be bathed in sunlight on Sunday, as it often is, and the naked will not feel too chilly.
And, if you're going, wear sunblock!