Buying a Home (Even When Interest Rates Are Up)

There’s been a lot of buzz about interest rates and yes, it’s changing the way some buyers approach the market. But here’s the thing: opportunities exist in every market. The East Bay is no exception.

People will always need to move whether it’s for work, family, or simply a change of scenery. The key is understanding how to work with the market instead of sitting on the sidelines waiting for the “perfect” time.

Here’s how to stay confident (and strategic) when buying in today’s market:

Focus on Your Monthly Payment, Not Just the Rate

Headlines love to talk about interest rates, but what really matters is how the full picture fits your budget. Property taxes, insurance, and HOA fees all factor into your monthly cost. Sometimes, a slightly higher rate doesn’t make as big of a difference as you might expect, especially if the home checks every box on your wishlist.

Know Your Financing Options

There’s more than one way to structure a mortgage.

• Temporary buydowns let you lower your rate for the first few years.

• Adjustable-rate mortgages (ARMs) can be a smart short-term solution for buyers who plan to move or refinance later.

• CalHFA and local loan programs can help first-time buyers with down payment or closing cost assistance.

A good local lender can help you compare options and find the structure that makes the most sense for your situation.

Look for Motivated Sellers

Higher rates can thin out competition which can actually work in your favor. Homes that have been on the market for a few weeks often come with more room to negotiate, whether that’s on price, repairs, or seller credits you can use toward lowering your interest rate.

Get Pre-Approved and Lock It In

Pre-approval is your first big step and your best advantage. It not only shows sellers you’re serious, but it also helps you move quickly when the right home comes along. Ask your lender about locking your rate so you’re protected if rates tick up while you’re still shopping.

Think Long Game

Rates rise and fall, but finding the right home in the right neighborhood has lasting value. You can always refinance when rates drop, but you can’t go back in time to buy the home that fits your life perfectly today.

The Takeaway

Yes, interest rates matter, but so do your goals, lifestyle, and timing. The smartest buyers aren’t waiting for “someday.” They’re planning strategically, buying wisely, and building equity now.

If you’re ready to explore your options, I can connect you with trusted local lenders and help you create a clear plan to move forward confidently...whatever the market’s doing.