A year ago, a lot of buyers here in San Diego ran the numbers and didn’t love what they saw.
Rates were pushing close to 7%. Payments felt high. And for many people, pressing pause made sense.
Today, the math looks different.
Mortgage rates have eased from nearly 7% last winter to around 6%, recently dipping to 5.99%. That shift alone changes what many buyers can comfortably afford, sometimes more than they realize.
If you looked at homes last year in North County, along the coast, or even inland and felt boxed in by your budget, it may be time to revisit the numbers.
Let’s use a $5,000 monthly budget as an example:
At 6.9% (about a year ago), that budget supported roughly a $743,000 purchase price.
At 6.2% (earlier this year), it supported about $786,000.
At 5.99% (recently), it supports roughly $800,000.
That’s about $57,000 more purchasing power than a year ago, and roughly $14,000 more just in the past few weeks.
Same buyer. Same income. Different rate.
And here in San Diego, that difference can be meaningful. It can mean moving from an attached property into a detached home, upgrading school districts, getting closer to the coast, or gaining that extra bedroom or office space.
(These estimates assume 20% down, a 30-year loan, 1.25% property tax rate, 0.5% insurance, and no HOA.)
National headlines are one thing. What matters more is what this means for your plan here in San Diego.
If you stepped back from the market last year because the numbers didn’t align, this is a smart time to quietly rerun them. Not to rush. Not to stretch yourself thin. And definitely not to become house-poor. But to look at the math clearly and make decisions from a place of strength.
Right now we’re seeing slightly lower rates, slower price growth in many pockets, and in some cases, more negotiating room on homes that have been sitting. That combination hasn’t existed in quite a while.
For buyers, this could mean checking what you qualify for at today’s rates, expanding your search into neighborhoods that were just out of reach last year, or targeting listings that may offer stronger negotiation opportunities.
For homeowners, it may also open the door to exploring a refinance strategy.
The market didn’t flip overnight. But the math improved. And sometimes that’s enough to change your next move.
If you’re wondering what you can afford right now in San Diego, or beyond, let’s rerun the numbers based on today’s rates and your real budget.
Once you have clarity, the next step becomes much easier to decide.
