I received about five different emails from various mortgage brokers last week, informing me that interest rates have fallen below six percent. This is apparently due to the Federal Reserve and Federal Home Loan Banks announcing that they’d purchase up to $600 billion in mortgage-backed securities.
What we’re seeing is a perfect storm for buyers in San Francisco—softened home prices; motivated sellers due to the time of year; less qualified buyers with whom to compete, and of course, low interest rates.