Mortgage rates just jumped. Here's what San Diego buyers can still control.

If you've been watching rates this week, you probably felt your stomach drop. The 30-year fixed hit 7.28% on October 1, the highest it's been since November 2023, according to Freddie Mac's weekly survey.

That's a real change, and it's fair to feel it. But a headline rate is only one piece of what you'll actually pay, and some of the other pieces are more in your hands than you think.

How much did the rate jump change a San Diego payment?

San Diego County's median sale price was $961,781 in August, according to Redfin. With 20% down, here's the monthly principal and interest on that price at the Freddie Mac averages (my own math, before taxes and insurance):

• At 6.34% (a year ago): about $4,783 a month
• At 7.03% (last week): about $5,135 a month
• At 7.28% (this week): about $5,264 a month

So compared with a year ago, the same house costs roughly $480 more a month to finance. That's the honest number. Now here's what you can do about it.

Is the rate I see online the rate I'll get?

Not necessarily. The weekly average is just that, an average. Realtor.com's Hannah Jones pointed out this week that the rate borrowers actually get can vary by nearly a full percentage point depending on credit score and down payment (Fox Business).

That gap is where you have some control:

• Your credit score. Paying down a card balance or fixing an error on your report before you apply can move your rate.
• Your down payment. Crossing certain down payment levels can lower your rate or your mortgage insurance.
• Your loan type. Conventional, FHA, VA, and adjustable loans all price differently. A good local lender will show you them side by side.
• Shopping more than one lender. The quotes really do vary, so compare at least two or three.

Do San Diego sellers negotiate right now?

More than you'd think from the headlines. In August, 22.3% of San Diego County homes for sale had a price drop, according to Redfin. Homes still sold in a median of 28 days at 99.2% of list price, so the well-priced ones still move. But a listing that's been sitting, or one that's already cut its price once, often has a seller who's open to a conversation.

And that conversation doesn't have to be only about price. Instead of asking for $15,000 off, you can ask the seller for a $15,000 credit toward closing costs, and use it to buy down your interest rate. Depending on the loan, that can lower your monthly payment more than the same amount off the price would. Ask your lender to run both options before you write the offer.

Should I wait for rates to come down?

That's your call, and there's no wrong answer. Just know the tradeoff. Prices in San Diego County were still up 5.7% from a year earlier in August (Redfin), and active listings were down 5.6%. If rates drop later, more buyers will likely come back at the same time, and you'll be competing with them.

Buying now with a plan to refinance if rates fall is one option. Waiting is another. The best move is to run your own numbers, at your price range and your rate, and decide from there instead of from a headline.

This weekend around San Diego County

If you're out looking at homes this weekend, here's what's going on around the county (dates and details from San Diego Tourism Authority):

• Pacific Beachfest, Saturday, October 3, Pacific Beach: fish tacos, beach volleyball, and live music on the sand.
• Taste of North Park, Saturday, October 3, North Park: over 40 food tastes from neighborhood restaurants and breweries.
• La Mesa Oktoberfest, October 2 to 4, La Mesa Village: three days of German food and live music.
• Trolley Dances, October 3 to 4: dance performances at stops along the trolley line.
• Autumn Festival at the San Diego Zoo Safari Park, starting Sunday, October 4, Escondido.

Bottom line

Rates went up this week, and that costs real money. But your credit, your down payment, your loan type, and how you negotiate with the seller are all still in your control, and in San Diego right now, a lot of sellers are willing to talk.

Want to see what today's rates mean for your budget and your search? Call or text me at (858) 295-0556, or book a quick call at https://calendly.com/mance-riederhomes/strategycall. You can also browse current San Diego County homes for sale at https://riederhomes.com/listing.

Mance Rieder | Broker Associate, DRE #02050930 | Rieder Homes Group | REAL Broker, LLC