Mortgage rates are tied to the U.S. 10-year Treasury. Many experts agree that interest rate changes will take a while to affect the San Diego real estate market. Our market has been characterized by low demand and high inventory.
One prediction I read projects interest rates to be up to 4.6% by the end of 2016. Wil this be a higher mortgage payment? Yes. Your mortgage may go up a few hundred dollars. You will feel the increase, but it will be not be enough to damage our local real estate economy.
From another perspective, as interest rates rise, there is likely to be a slight cooling off of increasing home prices, thus creating a more sustainable growth market.
To read more about this topic: I refer you to a recent article in the San Diego Union Tribune: http://www.sandiegouniontribune.com/news/2015/dec/18/mortgage-rates-san-diego/
For questions about buying or selling a home in San Diego, please give me a call today at 619-379-8616.