In May 2024, the Peninsula and Silicon Valley residential real estate market remains dynamic, with trends favoring sellers at every price point, from entry-level to luxury homes.
Interest rates continue to play a pivotal role in shaping buyers' decisions. With rates for 30-year fixed mortgages fluctuating between approximately 6.5% and 7.5%, buyers are treading cautiously. Yet, this hasn't deterred those who are ready to make their move this Spring.
Our clients, who recently purchased homes with us, are considering refinancing their loans when the Fed eventually starts to lower interest rates – a still uncertain move. Compass's Chief Market Analyst, Patrick Carlisle, points out that the Fed's plan to reduce rates by mid-year was put on hold due to rising inflation. However, the Fed has hinted at a possible rate reduction in the Fall.
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