Much of the blame goes to rising rates on mortgage loans. As of yesterday, a 30-year fixed went for 4.58 percent, up from 3.35 percent mere months ago, in May.
Home purchases are the first things to go when mortgage rates rise. The window of opportunity has closed on low rates for home loans.
The national trend bodes badly for San Diego, despite that some city realtors report a frenzy of activity that started last spring. Current reports seem to reflect the overly rosey outlook of realtors, while a look at real data poses a different picture.
Professor Piggington’s Almanac for the Landed Poor shows data that says “rising rates and increasing inventory will put an end to the recent quasi-frenzy conditions” in San Diego. Undue elation among local agents is sure to quiet, considering that home sales haven’t yet figured in the effect of current mortgage rate increases.
So, there you have it: a housing recovery that started – and ended – in a state that sugar-coats its perpetual slide from prosperity. Ah, but there’s always the weather to cite something good in California.