How Buyers Can Still Win With Rates Over 7% In San Diego

Rates Are Back Over 7%. Here’s What That Means If You’re Buying in San Diego This Fall

I’ll be direct: the rate headlines haven’t been friendly lately. According to Freddie Mac, the average 30-year fixed rate was 7.32% the week of October 22. That’s about a full point higher than this time last year. If you’ve been watching rates and waiting for a better window, I understand why this feels discouraging.

Before you decide to sit this one out, though, I want to walk you through what our team is actually seeing in the San Diego numbers.

What a point really costs

Take a home at San Diego’s September median single-family price of $1,079,000 with 20% down. At 7.32%, principal and interest come to about $5,930 a month. At last year’s rate of around 6.27%, the same loan was about $5,326. That’s roughly $600 a month more. It’s a real number, and I’m not going to pretend it isn’t.

Why that’s not the whole story

Higher rates have thinned out the competition. In September, pending sales across the county were down nearly 16% from a year ago, and closed sales were down 14%. Fewer buyers usually means:

• Fewer bidding wars

• More room to ask for seller credits

• More time to make a decision

The California Association of REALTORS described the fall market as “a little less rushed,” and that matches what we’re seeing at showings.

Houses and condos are two different markets right now

• Single-family homes: 2.4 months of supply, a median of $1,079,000 (up 5.8% from last year), and about 37 days on market. Inventory is still tight here, and good homes still move.

• Condos and townhomes: 4.0 months of supply, a median of $670,000 (essentially flat), and about 44 days on market. This is where buyers have the most leverage right now.

If you’re a first-time buyer, the condo side is worth a serious look this fall.

How we approach it as a team

This is where having real estate and lending under one roof helps. My dad, Mike, looks at the full picture with our clients:

• Seller-paid rate buydowns

• Loan programs that don’t require 20% down

• A realistic plan for refinancing if rates come down later

There are no promises on where rates go. The point is to make sure the payment works for you today.

The bottom line

Don’t let one headline number make the decision for you. If you’re curious what buying would look like for you at today’s rates, reach out. We’ll run your numbers, no pressure.

Michael Dullea, Dullea Brokerage

Disclosure: Rates cited are national market averages from Freddie Mac’s Primary Mortgage Market Survey and are not a quote or a commitment to lend. Your rate and terms depend on credit, loan type, down payment, property, and market conditions. Payment examples cover principal and interest only and exclude taxes, insurance, and HOA dues. All loans are subject to credit approval. Market data comes from SDAR/San Diego MLS (September 2026) and C.A.R.; figures are deemed reliable but not guaranteed. Mike E. Dullea Jr. | NMLS # [455330] | DRE # [02099753].Michael N. Dullea DRE # [02402448]. Equal Housing Opportunity.