Interest Rates Matter Less Than You Think for San Francisco’s $10M+ Buyers

There’s a headline that resurfaces every few weeks claiming interest rates are “paralyzing” the housing market. The number changes. The conclusion doesn’t. And while that narrative fits a large portion of buyers, it misses what’s actually happening at the top end of the San Francisco market.

At $10M and above, buyers rarely behave like rate headlines assume. These are not paycheck-dependent households. They’re capital-driven. Their liquidity is spread across brokerage accounts, equity positions, and long-held assets. As a result, the way they finance real estate looks fundamentally different.

So how do high-net-worth buyers purchase homes when interest rates are high?

They don’t rely on traditional income-based mortgages. Instead, many use asset-based lending, qualifying against their investment portfolio rather than a W-2. The loan is underwritten based on liquid assets, not earned income, which allows buyers to preserve capital, avoid unnecessary asset liquidation, and remain flexible even when rates rise.

This distinction matters more in San Francisco than in most markets. The City’s luxury inventory is limited, and the best properties tend to trade on timing, not consensus sentiment. When rate anxiety sidelines conventional buyers, well-prepared buyers face less competition. Fewer offers. More rational negotiations. Occasionally, pricing that reflects reality rather than momentum.

What’s often misunderstood is that asset-based lending isn’t a workaround or a niche trick. It’s a strategic financing option used by buyers who think in balance sheets, not monthly payments. The terms vary. The risks are real. And it’s not appropriate for everyone. But when it fits, it changes the relevance of interest rates entirely.

I see buyers miss opportunities not because they lack resources, but because they assume today’s mortgage environment applies to them in the same way it applies to everyone else. In San Francisco luxury real estate, that assumption is often wrong.

If you’re considering a purchase at the higher end of the market and wondering whether rates should actually slow you down, the right first step isn’t guessing or reacting to headlines. It’s understanding which financing structures are available to you and which ones align with your broader financial picture.

I regularly help clients think through those options quietly and realistically, including when asset-based lending makes sense and when it doesn’t. A short conversation can often clarify whether timing, structure, or patience is the smarter move.