Santa Clara County’s Real Estate Market Maintains Its Strength

Although sales volume in the Bay Area continues to be low, the Bay Area as a whole saw median house prices climb last month compared to March of 2006.

The possibility of a slowdown in job growth and or a sizable increase in mortgage rates could cause the Bay Area’s resilient housing market into a downturn.

But so far this year, we have seen rates move up and down within a narrow range of 14 to 20 basis points. The 30-year fixed rate mortgage rate is almost exactly where it was at the beginning of this year.

Interest rates may have not changed much in the past few months but the mortgage industry has. In the face of rising defaults and foreclosures nationally, mortgage lenders have tighten their lending policies.

All these news should not scare you out of the market if you are a prospective buyer or looking to refinance because it will be business as usual for borrowers with good credit. Stated income loans and interest only loans will still be available.

The US economy activity, a slowing housing market, employment gains and inflationary concerns kept the Federal Reserve’s decision to raise interest rates at bay though out the beginning of the year.

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April 20th, 2007 · Filed Under Keeping an Eye on the Market

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