What You Need to Know About Rising Mortgage Rates Changing the Game

By Shawn Hermosillo

Shawn Hermosillo, founder of Hermosillo Real Estate Group (HRE), is a Sonoma County native with deep roots in the community and a passion for real estate.

If you’re in the market for a home, here’s a situation you can probably relate to. Interest rates are climbing, meaning every decision matters more than ever. But here’s what most buyers don’t realize: waiting just a few weeks to decide can cost you hundreds more each month.

I recently worked with a client under contract for almost four weeks. She was on the fence, thinking, “Maybe I’ll back out and keep looking.” But here’s the thing—if she had decided to cancel, she’d face an interest rate almost three-quarters of a percent higher than when she first locked in her rate. For the same home, her monthly costs would have jumped significantly. Rising rates are changing the game for both buyers and sellers.

Why does this matter right now? Interest rates have surged 7.78% over the last month alone. Why does that matter to you? It means every day counts when it comes to locking in a rate. For context, rates around 5.875% a month ago are now close to 6.5%. Those small numbers pack a big punch over the life of a mortgage, adding up to thousands of extra dollars. For buyers, this means it’s crucial to act now.

Sellers, this affects you, too. With each rate hike, fewer buyers can afford homes at higher prices, so setting a realistic, competitive price matters if you want to attract serious offers. Pricing your home right can make a huge difference in today’s market.

Don’t let rising rates hold you back if you’re in the market. Yes, prices are up, but more sellers are adjusting expectations. Now’s the time to look for price reductions, especially on homes that haven’t moved. But don’t wait too long; if you find a home you love, locking in that rate can keep your costs manageable.

The market is moving fast, and I’m here to help you make the best decisions. Whether you’re weighing your next steps or have questions, call me at 707-591-0570 or hermosillogroup@gmail.com. Let’s discuss how you can make the most of today’s market.