San Diego Home Prices Dipped in August. But Interest Rates Aren't Helping Buyers

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San Diego Home Prices Dipped in August. But Interest Rates Aren't Helping Buyers
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Interest rates are around 6%, and for some San Diegans, that is still too much for purchasing a home.

“For every 1% increase in rate, a buyer qualifies for about 10% less home,” Harper said.“If they qualified for a $900,000 loan when rates were at 5%, when they go up to 6% there is a 10% drop in the sales price or loan amount they are going to qualify for so they’re only now going to qualify for $810,000,” Harper said.

On the flip side, those higher rates are impacting home sale prices in the county. It’s a ripple effect Jason Rooney experienced when he sold his home this summer. ”Yeah it was a little frustrating,” Rooney said. “More trying to sell our old home versus buying a new home.”“It was just trying to get the price point we wanted for it because the market was slowing down or people weren’t as eager to buy,” Rooney said.

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