Mortgage Rates on the Rise. Now What?


by Roberta Murphy

Mortgage Rates on Rise
Mortgae Rate History

The past couple of weeks have been full of buyers moaning about rising interest rates. A few fearful agents are even speculating the San Diego real estate market is going straight over the cliff.


We were selling homes all over San Diego a few years ago when rates were 5 and 6 percent interest–and when home prices were even higher. Rates in the 4’s would have neen a Godsend in those days–and the 5’s very acceptable.

What I hope will happen is that housing inventory in San Diego will increase, prices will stabilize (we DO NOT want another bubble!) and buyers will not be competing against multiple offers and sellers can quit worrying about selling too low in a rising market.

So What Will the San Diego Real Estate Market Look Like with Mortgage Rates on the Rise?

With interest rates approaching more normal levels, housing inventory should also approach something that looks more recognizable. There will be reasonable housing inventory from which buyers can choose. There may be multiple offers, but only on the true real estate bargains. And sellers may have to be a little more patient in waiting for an offer–and when it comes, must be prepared for skillful negotiations.

A balanced market is one where both home buyers and sellers have choices–and negotiation brings them together.

Our Advice?

Don’t try to second guess the market.  If you a are a buyer, go ahead and find the home you want and can afford while rates are still so low. If you are a seller, go ahead and put your home on the market subject to the advice and counsel of skilled real estate professionals.

If you are thinking of selling and moving into another home, your timing is probably perfect. As a San Diego home seller, you’ll have a strong market of buyers who may be looking for a home like yours. As a buyer, you’ll still be able to take advantage of historically low mortgage interest rates to help finance your replacement home.

And if inflation takes off, as many expect, you’ll be paying off mortgage debt with “cheaper” dollars.

To discuss your home selling and buying options, feel free to give us a call at either 877-818-8197 or 760-402-9101. Email: