Why Bay Area home prices unlikely to drop despite higher mortgage rates
Source: SF Chronicle
Mortgage interest rates recently exceeded 5% for the first time in more than a decade. However, there are few signs that the sharp rise in mortgage rates will lead to noticeable declines in Bay Area home prices anytime soon.
The average interest rate for a 30-year fixed-rate mortgage reached 5.11% last week, up from 3% at the start of the year. But, experts say, low inventory and a willingness from high-earning home buyers to engage in bidding wars are expected to keep the Bay Area’s home prices from declining.