The average interest rate on a 30-year fixed-rate mortgage climbed above 6% for the first time since the housing market crash in 2008.
The U.S. Federal Reserve has been incrementally raising interest rates to fight inflation.
According to Freddie Mac, the current 6.02% interest rate is more than double the interest rate at the same time last year.
“Unfortunately, rates are a little bit high right now however, what I’m seeing personally, especially from my more experienced buyers they’re used to double digits so for them they know that the market is cyclical, everything comes around full circle,” San Diego Realtor Destiny Roxas said.
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Some local homebuyers see bright spots in the shifting housing market.
More on the Housing Market
“For me, I prefer a higher interest rate over a higher amount on a house because a house can always be refinanced later,” Lindsey Dickenson said.
According to the Greater San Diego Association of Realtors, the median price for a single-family home in San Diego County dropped 5% to $910,000.
San Diego Realtors reported 1,564 homes were sold in Aug. 2022 which is a 14% increase from July.
“August is a very popular time to go home shopping. Typically, before you hit September a lot of people have families, and their kids are going to be back in School so ideally, you are able to wrap up a lot of your major homebuying in that time,” Roxas said.
Although sales jumped in August, they’re still 30% lower than the same month last year.
The U.S. Federal Reserve will meet in Sept. and another interest hike is possible, which could impact the Real Estate Market.
