How the AI boom is turbocharging San Francisco’s housing market
But many buyers in Ghobadian’s area remain undeterred. “Because of the Bay Area having such a small space, the lack of inventory is the driving force here,” she said. “Are rates having a negative impact? Certainly. Are they stopping people? No, they’re not.”
Plenty of buyers are opting for all-in offers. Others who are drawing on stock options and bonuses rather than fixed salaries, Ghobadian said, are choosing adjustable-rate mortgages to manage their monthly payments while they compete for homes, part of a broader trend of brokers turning to adjustable-rate mortgages as the pricing gap widens against 30-year fixed loans.
For buyers navigating a market this competitive – but who can afford to do so – Ghobadian’s advice is to think beyond the immediate cost of financing. “You have to look past the rate conversation and look at the appreciation on the home,” she said.
“A house is such a big investment. It’s like an addition to your 401(k). If you look at the appreciation trend in your neighborhood, in your zip code, in your area, and focus on that, I think that’s a better angle of looking at things than just rate.”
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