Home sales nationwide posted their strongest annual gain of 2026 in July, increasing 7%, according to Zillow. However, that momentum may be difficult to maintain as mortgage rates move higher.
Zillow explained that many July closings came from offers accepted weeks earlier, when mortgage rates were closer to 6.5%. Since then, rising borrowing costs have caused some prospective buyers to pause their plans.
For San Diego, where home prices are already higher than much of the country, even a small rate increase can noticeably affect monthly payments and purchasing power. This could mean fewer competing buyers and more negotiating opportunities, but affordability will remain a major consideration.
The takeaway: Don’t try to perfectly time the market. Focus on the payment, property, and terms that make sense for your situation. Buyers may find opportunities as competition slows, while sellers should price strategically and prepare their homes to stand out.
Thinking about buying or selling in San Diego? Let’s look at the numbers and create a strategy based on today’s market.
Aaron Atencio, Realtor®
DRE #02247344 | LPT Realty, Inc.
TrulySD.com | 619-573-8763
