It doesn't matter if you're in the market for a home right now or not — everyone's talking about rising interest rates. The Federal Reserve raised its rate three-quarters of a percentage point in June, the biggest increase in nearly 30 years, and after two years of a red-hot housing market, there are signs everywhere that home buying may finally slow. Real estate experts are starting to see Bay Area home buyers drop out of the market entirely, fewer people turn out for open houses, homes sitting on the market for more than a few weeks, and even — gasp — the return of some contingencies. Plus, rates are expected to continue climbing. Many of these consequences of rising interest rates, especially when coupled with high inflation, aren't exactly surprising. What might surprise some Bay Area residents though, is the impact all of this could have on the rental market. "When we look at the price of renting versus the price of a mortgage [in the Bay Area] this is the largest divide we see across the country. It's almost three times more expensive to pay for a mortgage than to rent, so we'll likely see rent rise as a… Read full this story
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