Why Today’s Mortgage Rates Aren’t the Scary Part—At Least Here in the South Bay
If you’ve been watching the South Bay real estate market from the sidelines, mortgage rates may feel like the one thing holding you back. I hear it all the time from buyers in Cupertino, Santa Clara, and Sunnyvale: “I’ll move when rates drop just a bit more.” That hesitation is understandable—but it’s not always the smartest diagnosis for your long-term goals.
Nationally, mortgage rates have been the headline everyone fixates on. Many experts point to the “magic number” around 6%, where buyer confidence tends to surge. According to the National Association of Realtors, a 6% 30-year fixed rate would make homeownership affordable for millions more households—and history shows that when rates hit that psychological threshold, buyer demand doesn’t trickle in. It rushes in.
What This Means for the South Bay Real Estate Market
Here in Santa Clara County, we see this play out a little differently. Inventory has improved compared to last year, which means more Santa Clara homes for sale, more choices, and—yes—more negotiating power for buyers who are active before the crowd returns.
Many buyers assume waiting for a rate like 5.99% will dramatically change their monthly payment. In reality, on a typical loan, that difference can be surprisingly small—often comparable to everyday discretionary spending. Meanwhile, if lower rates bring more buyers back into the market (as expected), home prices in high-demand areas like Cupertino and Sunnyvale tend to rise quickly, offsetting those rate savings.
From my experience helping buyers navigate Cupertino housing trends and Sunnyvale home buying tips, the bigger advantage right now isn’t the rate—it’s timing. Fewer competing offers, calmer negotiations, and sellers who are more open to terms that actually protect buyers.
A More Practical Way to Think About Rates
As a local agent, I approach this less like a salesperson and more like a doctor. The right question isn’t “Is the rate perfect?” It’s: Does this move support your financial health, lifestyle, and long-term plan?
That’s why I encourage clients to focus on what they can control—affordability, comfort with monthly payments, and choosing the right home—rather than waiting for a headline rate that may trigger a very different, much more competitive market.
Bottom Line
Today’s mortgage rates aren’t the enemy. Waiting without a strategy might be.
Once rates dip further, more buyers are likely to re-enter the market, especially across the South Bay. That typically means higher prices and fewer opportunities to negotiate. For buyers who are financially ready, this quieter window can actually be an advantage.
If you’ve been thinking about getting back into the market—or just want a clear, data-driven second opinion—let’s talk about what’s realistic and possible right now in Santa Clara County. Sometimes the best decisions come from the right diagnosis, not the loudest headlines.
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