Comments on: How Will Rising Mortgage Rates Affect San Francisco Real Estate? http://www.lubasf.com/blog/how-will-rising-mortgage-rates-affect-san-francisco-real-estate.php The Friendliest Blog about San Francisco Real Estate Mon, 30 Aug 2010 19:50:11 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Natasha Lovas http://www.lubasf.com/blog/how-will-rising-mortgage-rates-affect-san-francisco-real-estate.php/comment-page-1#comment-2093 Natasha Lovas Thu, 19 Nov 2009 19:16:35 +0000 http://www.lubasf.com/blog/?p=1177#comment-2093 Eventually rates will go up, but I don't think this will happen for at least 5 or 6 months, and when they do go up, it will be gradual. Right now rates are at their all-time lows and many more people are able to afford to buy in San Francisco than in the past few years. Low rates, along with lower prices, have made this possible. If rates go up, of course that could slow sales. Then again, it could also create a sense of urgency in buyers and prompt more sellers to put their homes on the market before rates go up too much. I don't think interest rates have such a huge impact in San Francisco as they might elsewhere, because are salaries are good here; the issue is more one of down payment funds. It's really hard to save up even a 10% down payment in San Francisco. There are just too many fun ways to spend those paychecks! Eventually rates will go up, but I don’t think this will happen for at least 5 or 6 months, and when they do go up, it will be gradual.

Right now rates are at their all-time lows and many more people are able to afford to buy in San Francisco than in the past few years. Low rates, along with lower prices, have made this possible.

If rates go up, of course that could slow sales. Then again, it could also create a sense of urgency in buyers and prompt more sellers to put their homes on the market before rates go up too much.

I don’t think interest rates have such a huge impact in San Francisco as they might elsewhere, because are salaries are good here; the issue is more one of down payment funds. It’s really hard to save up even a 10% down payment in San Francisco. There are just too many fun ways to spend those paychecks!

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