As home prices continue to decline – currently down 6 percent since May – and mortgage rates continue to rise – currently over 7 percent and doubled since January – how close are we to where the two balance each other out? According to experts – not very.
IOn San Francisco and San José, for example, prices would have to drop an additional 10 percent to reach May’s monthly payments.
On the other hand, many Bay Area cities had very high prices before the pandemic, so they would have to fall less than 10 percent. But prices would still remain very high!