How Interest Rates Are Re-Shaping Buyer Strategy in 2025

Modern home with sold sign

With rates hovering at levels in line with historic averages, there isn't enough incentive based on loan rates to cause all Buyers to dive in, Some Silicon Valley buyers are becoming more strategic. The strongest trend right now? Marry the house, date the rate. This means buyers are anchoring themselves in the home that aligns with their long-term lifestyle, knowing the rate can be refinanced when the market softens.

Many buyers are also trying:

• Increasing down payments

• Choosing 7- or 10-year ARMs

• Partnering with lenders offering temporary buy-downs

• Prioritizing school districts and commute patterns over temporary costs

Sellers who understand this mindset — and price with strategic empathy — are the ones seeing multiple offers even in a rate-tight landscape.

Deniece Smith - Compass - 650-744-0888 - DRE 01295757