It might not seem like the best time to open a new housing project with mortgage rates north of 5 percent — but it doesn’t matter when demand is through the roof.

Mira Mesa’s new development, 3Roots, had its official opening Thursday night and there are more than 20,000 people on an interest list for fewer than 1,200 homes. The affordability of homes has changed drastically since sales started last fall as interest rates have hit their highest point in years.

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Mortgage rates were around 3 percent when the first 3Roots homes went on sale about eight months ago but were hovering around 5.5 percent this week, said Mortgage News Daily, for a 30-year, fixed-rate home. That big of a change might doom a project — but a persistent housing shortage and 3Roots’ proximity to high-paying jobs in life sciences and technology mean nobody is struggling to find buyers.

Developers insist demand is as high as ever, despite single-family homes in the development starting at $1 million and going up to $1.8 million.

Assuming a buyer puts 20 percent down on a fixed-rate, 30-year mortgage, for the least expensive single-family home, the monthly payment would be around $4,800 a month — and that’s after coming up with a $200,000 down payment. It would seem like there’s a very small part of the population who could afford that.

Ryan Green, San Diego division president for developer Lennar, said interest rates haven’t made a difference in enthusiasm for the project. The three developers on the project — Lennar, California West and Shea Homes — have resorted to holding lotteries for who gets to buy out of a pool of pre-qualified buyers. They also are asking buyers to make offers on homes, which is somewhat rare in new developments that usually have set costs.

“It has not shaken our demand,” Green said of mortgage rates. “It hasn’t changed anything.”

The high cost might not matter that much when there are so few new single-family homes available and there are still wealthy buyers who can put down significant down payments, said Nathan Moeder, principal with real estate analysts London Moeder Advisors. Interest rates won’t matter much if a buyer can, for instance, come up with 50 percent down.

“Going forward, there is going to be so much demand,” he said, “that even if half of buyers fall out from interest rates, you’re still going to have people that will be able to come up with a large down payment.”

The 413-acre 3Roots masterplan has things going for it that might be able to weather rising costs besides its proximity to Qualcomm, Thermo Fisher, Sony and other big companies. It is located between the I-805 and I-15 freeways, making for a short commute to most of what the region has to offer. It also is near the new San Diego Trolley Blue Line extension and the Westfield UTC mall.

With the bulk of new for-sale home construction in South San Diego County, 3Roots represents a rare chance to own a new home closer to jobs for many workers. Its central location might also appeal to workers who don’t work in nearby Sorrento Valley but in other parts of the county.

There are 1,191 for-sale homes in the project, which is expected to be completed in the next 12 months. There will also be 429 rentals and 180 subsidized units that will take around two years to complete.

One of the newest owners is interior designer Mackenzie Warren, 22, who lives in the Aero neighborhood of 3Roots, which features detached, three-story homes. She lives there with her sister and said the purchase was a family effort with contributions from herself, her parents and her sister. Homes in Aero start at $1.2 million.

Warren works for Within Design, a San Diego interior design firm that worked on 3Roots. She said there was a bit of sticker shock with the price, but she and her family were confident the location of the project would make it a solid investment.

“We know this area is so up-and-coming,” she said.

3Roots has a wellness theme throughout the project that includes Zen gardens and other aspects to project a healthy lifestyle. Amenities include electric vehicle charging stations, dedicated open space and trail networks, community parks, celestial-themed playgrounds (which promotion materials say will “inspire young minds to reach for the stars”), bike paths, space for restaurants and local retail, pools, and the latest filtration and monitoring technology to purify air and water.

A centerpiece of the project is its 15,000-square-foot Fit & Rec Center, which has two pools, a sauna, gym, yoga rooms and a unique design. Developers said they wanted to keep the area’s industrial past alive — it is built on the site of a former quarry — and hired a company known for airplane hangers to create the recreation center. C&S Companies, which recently completed the Coast Air hanger and school at Montgomery-Gibbs Airport, created the recreation center, which has an industrial look and has what looks like a big airplane hanger opening to one of the pools.

The building also features an outside roof with a hole to accommodate a tree. From far away, it looks like a tree is growing out of the building. High-end gym operator Fit Athletic Club will operate the fitness center, and residents don’t need to buy a separate membership. Entrance is baked into homeowner association fees, around $300 to $400 a month.

Lucky for some buyers, it isn’t just single-family homes in 3Roots. There are townhouses that start in the low $700,000s that are up to 1,661 square feet. Still, if you have been waiting for the project to open for a long time, you might be surprised with the latest numbers. Last year at this time, townhouses in the Dorsey section of 3Roots were anticipated to be in the low $600,000 range. Now they are mid-$800,000.

A lot has happened in the real estate market since price estimates came out last year and the San Diego County median home price was $725,000. As of April, the median home price was $840,250, a 20 percent increase in a year.

The buying process in 3Roots can be very different depending on what neighborhood you choose. For instance, if you want to buy a single-family home in the Alta section (starting at $1.8 million), you must first get pre-qualified, and then Lennar holds a drawing to see who makes the cut. If you’re selected, you get to buy at a set price. If you aren’t selected, the developer invites you to try again.

If you want to buy a single-family home in the Citrine section, Lennar wants you to make an offer. Citrine starts at $1 million, and Green said they don’t accept offers under the starting price. This could mean you end up paying more than your neighbor for virtually the same house. (Potential buyers will eventually be able to search sold home prices on websites like Redfin or Zillow and get a better idea of what to offer.)

Offer arrangements are becoming more common at new home developments in California as demand remains high. Even Chula Vista’s Otay Ranch masterplan, which has almost exclusively had set prices and lotteries to determine buyers throughout its history, has seen some developers this year also begin asking potential buyers to make offers.

Dorsey (Townhouses and flats, up to 1,609 square feet) Prices begin from the mid-$800,000s

Atwood (Townhouses, up to 1,872 square feet) Prices begin from the mid-$700,000s

Hudson (Townhouses, up to 2,177 square feet) Prices begin from the $800,000s

Citrine (Single-family homes, up to 2,464 square feet) Prices begin from the low $1,000,000s

Lotus (Single-family homes, up to 3,124 square feet) Prices begin from the mid-$1,000,000s

Asana (Townhouses, up to 1,661 square feet) Prices begin from the low $700,000s

Aero (Detached bungalows, up to 2,041 square feet) Prices begin from the $1,200,000s

Palmer (Condos, up to 2,308 square feet) Prices begin from the mid-$900,000s

Biro (Detached villas, up to 2,743 square feet) Prices begin from the low $1,400,000s

Alta (Single-family homes, up to 3,643 square feet) Prices begin from the $1,800,000s

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