What the Return of Risky Loans Means for San Antonio’s Real Estate Market
By Caroline Decherd & Susanne Marco, Park Properties Group at Phyllis Browning Company
If you’ve seen the recent headlines about homebuyers turning to “risky loans,” you’re not alone. The Wall Street Journalrecently reported a rise in adjustable-rate mortgages (ARMs) — loans that start with a lower interest rate but can adjust (and increase) over time.
So what does that mean for us here in San Antonio? Let’s break it down — because our market doesn’t always move the same way the national news does.
San Antonio’s Market Is More Stable Than the Headlines Suggest
While much of the country is struggling with affordability, San Antonio remains one of the most balanced and resilient housing markets in Texas.
We aren’t seeing the same extreme price spikes as Austin or Dallas, but we are seeing more creative financing strategies as buyers look for ways to manage higher rates.
Some buyers are turning to ARMs to lower their initial payments — especially those who know they’ll move, upgrade, or refinance within a few years. Here in neighborhoods like Alamo Heights and Monte Vista, where homes can range from $700,000 to $3 million, that lower starting rate can make a real difference in monthly affordability.
But stability is the keyword. Our steady job market, strong medical and military sectors, and ongoing demand in 78209 and 78212 mean San Antonio is not a market built on risky lending — it’s built on smart, strategic moves.
What Buyers Should Know
If you’re thinking about buying, now is the time to get educated, not anxious.
ARMs aren’t automatically bad — they just require clear understanding and a solid plan.
At Park Properties Group, we guide our clients through every step:
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Comparing loan options with trusted local lenders
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Running payment projections for different loan types
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Assessing how long you plan to stay in the home before your rate adjusts
We’ve seen firsthand that when buyers make informed decisions, even a “risky” loan can work in their favor — as long as it aligns with their goals and timeline.
What Sellers Should Know
For sellers, this trend means more qualified buyers are finding creative ways to stay in the market — which is good news for your bottom line.
The rise in ARMs can actually expand the buyer pool, especially for well-priced homes in highly desirable areas like Terrell Hills or Olmos Park, where the average home price can exceed $1 million.
Buyers using ARMs often move quickly to secure a home before rates change again — so listings that are strategically priced and beautifully presented continue to sell strong.
The Bottom Line
Yes, adjustable-rate mortgages are making a comeback — but here in San Antonio, it’s less about risk and more about resourcefulness.
Buyers are adapting. Sellers are still succeeding. And our city’s real estate market remains one of the healthiest and most opportunity-filled in Texas.
Whether you’re considering a move or just want to understand how today’s rates affect your plans, let’s have a conversation. We’ll help you read beyond the headlines — and make a smart move in San Antonio.
Caroline Decherd & Susanne Marco
Park Properties Group at Phyllis Browning Company
Extraordinary Service. Exceptional Results.
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