Mortgage Rates Just Hit 5.98%—San Jose Buyers Now Have a Reset Window in Evergreen & Silver Creek

As of February 26, 2026, the 30-year fixed mortgage rate averaged 5.98% in Freddie Mac’s weekly survey. That number matters because 6% is a psychological line. When rates drop below it, many buyers who were waiting on the sidelines start touring again. More buyers can mean more competition, but it also changes how sellers think—and how fast negotiation power can shift.

At the same time, San Jose prices have softened. In January 2026, Redfin reported the median sale price in San Jose at $1,255,000, down 10.7% year-over-year. That combination—sub-6% rates + softer pricing—creates what we call a reset window: a period where prepared buyers and investors can negotiate intelligently if they know what to buy and how to underwrite risk in micro-markets like Evergreen and Silver Creek.

This is exactly where Block Change Real Estate stands out. We take a verification-first approach: we use San Jose real estate data and deep due diligence to protect your long-term portfolio—not just get you into a home. And in HOA-heavy neighborhoods (common in Silver Creek), we teach buyers how to underwrite the HOA—budgets, reserve studies, meeting minutes, and assessment risk—so you don’t buy a surprise.

The “sub-6%” moment: why 5.98% reshapes buyer power fast

A rate change seems small on paper, but it can feel big in real life. When rates cross below 6%, three things typically happen:

First, buyers re-engage. Some buyers paused at 6.5%–7% because the payment felt too steep. Sub-6% feels like “permission” to start again, even if the difference is a few tenths of a point. Freddie Mac’s data confirms the current average is 5.98% as of Feb 26, 2026.

Second, negotiation dynamics tighten. In a slower market, sellers often accept repair credits, rate buydowns, and longer contingency timelines. When buyer traffic increases, sellers feel less pressure to compromise. That means the window for “easy wins” can close quickly.

Third, the best homes separate from the rest. In reset markets, turnkey homes in strong micro-locations can still get strong offers. Meanwhile, homes with layout issues, noise, or hidden risks sit longer. Your job is to buy the right asset—not just a nice photo set.

San Jose’s reset signal: price softening gives buyers more leverage (for now)

San Jose is showing a real shift. In January 2026, Redfin reported:

• Median sale price: $1,255,000 (down 10.7% YoY)

• Average days on market: 31 days (up from the prior year, per Redfin’s trend line)

This is what a reset looks like: more time to think, more room to negotiate, and more consequences for sellers who overprice. But once rates drop below 6% and buyers surge back, you can see the market “snap” toward competition again—especially in popular pockets.

That’s why timing alone is not the plan. Preparation is the plan.

Evergreen market analysis: what the January 2026 data says (and what it means)

Evergreen is one of San Jose’s most searched, family-friendly areas, but it’s still a micro-market made of smaller pockets. In January 2026, Redfin reported Evergreen’s:

• Median sale price: $1,400,000 (down 3.4% YoY)

• Median days on market: 28 days (up year-over-year)

• Homes sold: 107 (down 10.1% YoY)

Here’s what that means in plain English: Evergreen is cooler than last year, but it’s not weak. Buyers have leverage, but they still need to move decisively on the right homes.

What to buy next in Evergreen (portfolio-first picks)

1) “Clean layout” homes with solid fundamentals
A functional floor plan usually wins in resale. Look for natural flow from kitchen to living space, usable bedrooms, and a layout that works for daily life. In a reset, buyers get picky, so layouts that “just work” hold value.

2) Homes with manageable cosmetic updates (not major structural surprises)
Cosmetic work—paint, lighting, flooring—is a negotiable lever. You can often ask for credits or price reductions when a home feels dated. But big-ticket unknowns (foundation, drainage, roof end-of-life) can erase any discount fast.

3) Micro-locations that protect demand
Evergreen can change block by block. A quieter interior street, better school pocket, or more convenient access can be the difference between a fast resale and a slow one. A data-driven realtor should show you how that micro-location affects comps and buyer demand.

What to avoid (or negotiate hard) in Evergreen

1) Overpriced “updated” homes with no real scarcity
Some sellers price as if it’s still peak frenzy. If the upgrades aren’t meaningful or the location isn’t premium, the price needs to reflect today’s market.

2) Homes with hidden “cap-ex” piles
If the inspection points to roof replacement, major drainage work, or old systems, treat it like a business decision. Either negotiate credits that match real costs or walk.

3) Features that shrink resale demand
Busy streets, awkward parking, or poor natural light can reduce your buyer pool later. In a reset market, those issues show up in days on market and final price.

Silver Creek property data: why “luxury” can still be negotiable in 2026

Silver Creek is not one market. It’s multiple micro-markets—gated vs non-gated, golf-course adjacency, view corridors, and HOA structure all matter.

In January 2026, Redfin reported Silver Creek’s:

• Median sale price: $3,300,000 (up 3.8% YoY)

• Average days on market: 31 days (up from 14 days last year)

• Homes sold: 10 (down from 12 last year)

That jump in days on market is a big deal. It suggests buyers are more selective, and sellers can’t rely on speed alone. In luxury, confidence is everything—buyers want proof, not promises.

What to buy next in Silver Creek (smart luxury rules)

1) Scarcity features that stay scarce
Views, privacy, premium lots, and true indoor-outdoor flow tend to hold value. If you’re paying a premium, make sure you’re buying something that can’t be replicated by the next listing.

2) Turnkey homes—or homes with a clear, priced renovation plan
In luxury, many buyers prefer turnkey because time is costly. If the home needs work, it must be priced correctly, and the plan should be realistic (timeline, permits, scope, contractors).

3) Homes with strong HOA documentation and stable governance
In gated communities, you’re buying into a shared financial system. Your due diligence is not optional. This is where a verification-first approach protects your portfolio.

What to avoid in Silver Creek (common expensive mistakes)

1) Weak HOA reserves or vague long-term maintenance plans
Reserve strength impacts future special assessments and dues stability. Freddie Mac confirms rates are improving, but HOA risk can still destroy affordability through surprise costs.

2) Luxury pricing without luxury liquidity
A home can be expensive but still hard to resell if it has a polarizing layout, limited parking, or strict HOA rules that reduce buyer demand.

3) “Pretty today” problems that show up later
Drainage issues, slope concerns, repeated repairs, or ongoing neighborhood disputes often appear in HOA minutes and disclosures—not in photos.

The negotiation playbook for a reset window (use this before the market tightens)

When rates dip below 6%, the market can heat up quickly. Your best move is to negotiate with structure, not emotion.

Step 1: Build your “buy box” with data

This is the fastest way to avoid chasing the wrong home.

• Set your price band based on payment comfort, not just approval amount.

• Choose 2–3 micro-pockets (not “all of San Jose”).

• Define must-haves vs nice-to-haves so you don’t overpay in competition.

This is where San Jose real estate data is practical: it turns your search into a filter.

Step 2: Use days-on-market to measure leverage

In Evergreen, 28 DOM suggests some negotiating room. In Silver Creek, 31 DOM suggests buyers are taking time and sellers may be open to terms.

• If a home is sitting longer than local comps, ask why.

• If it’s just pricing, negotiate price/credits.

• If it’s risk (HOA, condition, location), negotiate hard—or avoid.

Step 3: Ask for the right concessions (and justify them clearly)

In a reset window, buyers can often negotiate:

• Repair credits based on inspection findings

• Seller-paid rate buydowns (when it pencils)

• Price adjustments based on comp gaps

The key is to tie every request to evidence, not feelings.

The trust step most buyers skip: underwriting the HOA in Silver Creek

In HOA-heavy neighborhoods, your monthly dues are only the surface. Real risk lives in:

• budgets,

• reserves,

• deferred maintenance,

• and governance patterns.

Even recent mainstream coverage warns that HOA budgets and governance can contain major red flags that buyers should review early.

At Block Change Real Estate, we call this the Verification-First HOA Audit. Here’s how to execute it.

HOA Audit Checklist (what to request + how to read it)

1) HOA Budget + Year-End Financials
How to apply it: Compare operating income vs operating expenses. Look for repeated deficits or “temporary fixes.” A stable HOA should not depend on constant fee spikes to stay afloat.

2) Reserve Study + Funding Plan
How to apply it: Confirm the reserve study is current and see if major projects are funded. If reserves are weak or projects keep getting delayed, special assessments become more likely over time.

3) Meeting Minutes (12–24 months)
How to apply it: Read for repeat patterns—leaks, drainage, litigation talk, vendor failures, or expensive repairs. Minutes often reveal the real story before it shows up as a bill.

4) Special Assessment History + Upcoming Projects
How to apply it: Ask what assessments happened recently and what projects are planned next. If the HOA has big projects with no clear funding plan, that’s a risk signal.

5) Insurance Summary (when available) + Claims Trends
How to apply it: Rising insurance costs can force dues increases. Any struggle to obtain coverage can become a financing and resale issue.

6) CC&Rs and Rules that impact resale
How to apply it: Review rental caps, parking rules, and architectural restrictions. If rules reduce flexibility, they reduce your buyer pool later.

This is why we call ourselves a data-driven realtor team. We don’t just look at the home—we look at the asset and its risk.

What sellers should know right now (Evergreen & Silver Creek)

If you’re selling in 2026, the sub-6% headline can bring more buyers back, but buyers are still cautious because pricing has softened. Sellers who win in this market usually do three things well:

1) Price to today—not to last year.
Buyers have comps, trend charts, and days-on-market data. If you overprice, the market often tells you quickly.

2) Pre-pack the proof.
Clean inspections, clear disclosures, and HOA docs ready early reduce buyer fear. Less fear = stronger offers.

3) Make the home easy to say “yes” to.
Small prep work matters more when buyers have options: paint touch-ups, staging, and corrected deferred maintenance can protect your net price.

Why Block Change Real Estate is built for this moment

This reset window rewards buyers who are prepared, and sellers who are honest. At Block Change Real Estate, we use a verification-first process that helps clients make confident decisions:

• We anchor strategy in current rate and pricing data (not hype).

• We break Evergreen and Silver Creek into micro-markets using real comps and inventory behavior.

• We underwrite HOA risk so the home fits your long-term portfolio, not just today’s emotions.

That’s how we protect wealth in Evergreen and Silver Creek—one smart decision at a time.

Conclusion: Sub-6% rates can reopen competition—so buy with a plan, not a guess

Mortgage rates averaging 5.98% are a real milestone, and San Jose’s $1,255,000 median sale price in January 2026 reflects meaningful softening. Together, they create a reset window where buyers and investors can negotiate with more intelligence—but only if they choose the right micro-market and verify the risks.

In Evergreen, look for clean layouts, strong pockets, and negotiable cosmetic opportunities—while avoiding hidden big-ticket issues unless priced correctly. In Silver Creek, pay for true scarcity and demand proof on HOA health, reserves, and rules—because governance can affect both cost and resale.

If you want a clear, data-backed plan tailored to Evergreen or Silver Creek, Block Change Real Estate can walk you through a Verification-First Buyer Audit—pricing, comps, negotiation strategy, and HOA risk flags—so you can move fast and stay protected.

Call/Text Block Change Real Estate: (408) 972-1367