Doug Duncan, chief economist of Fannie Mae states “A far bigger restraint on home sales is a limited supply that should push up prices by nearly 5% both this year and in 2016. As a result, he expects home sales to increase 4% in 2016, down from 8% this year, with higher rates holding back 1% to 2% of deals.”
I believe this increase in interest rates won’t make much of a difference, if at all, in our Bay Area market where housing is limited and buyer’s continue to want a place to call home.
For the complete article, check out this link:
For a more local view, check out this Mercury News article: