interest rate: Impact of rising interest rates in Silicon Valley.
- 11/13/15 03:46 AM
California’s Housing Affordability Index (HAI) for Q3 2015 was recently released. Compared to last Quarter, housing prices dropped, however, the rise of interest rates had offset the any potential savings from the lower prices. The Affordability Index remained the same for both Santa Clara and San Mateo Counties as Q2 2015.
In Santa Clara and San Mateo Counties, less than 1 in 5 Californians could afford to purchase the median priced homes in these respective counties. Think about that number. The Affordability Index is a huge psychological hurdle for most homebuyers.
The Data
In Santa Clara County, the median home price was $965,000, … (0 comments)
interest rate: Fed keeps rate at same level
- 01/31/07 08:48 AM
No big surprise. The fed announced it would keep the fed rate at 5.25%. This is great news for the real estate industry, as an increase in the fed rate would certainly lead to an increase in mortgage rates. As long as the employment picture here in Silicon Valley looks solid as it has been and the mortgage rates remain low, the prospects of increasing home sales activity looks promising. When people are secure about their jobs and money is relatively cheap to borrow, people will stretch and make commitments to buy homes. Now only if only somone can tackle the affordability issue......
California’s Housing Affordability Index (HAI) for Q3 2015 was recently released. Compared to last Quarter, housing prices dropped, however, the rise of interest rates had offset the any potential savings from the lower prices. The Affordability Index remained the same for both Santa Clara and San Mateo Counties as Q2 2015. 
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