As many people predicted, the Fed lowered its benchmark interest rates today. But while many people predicted a quarter of a point drop, the Fed actually reduced it by half a point, going from 5.25% to 4.75%. Not bad for the first rate reduction in 4 years!
While across the country, the upward trend in mortgage rates and the fallout of subprime lenders had caused a serious downturn in housing markets, San Francisco real estate has managed to stay sheltered from the storm with high demand and little supply – keeping our market going strong.
The lower rates will likely not bail out the entire country’s housing market, but here in San Francisco, where we haven’t really needed a bailout, we can only see positive effects as buyers reap the benefits of a slightly lower interest rate. If you’ve been sitting on the fence about buying or selling, it’s safe to jump off and take the plunge into the market.