Federal Reserve leaves key interest rate unchanged, citing low inflation


It’ll be interesting to see where mortgage interest trends over the next few months.  Mortgage interest rates have ticked up over past few weeks in anticipation that the Federal Reserve would raise Fed rates last week.  Many economists still expect the Federal Reserve to move Fed rates from zero where it has been or near since 2008.  Most economists expect mortgage interest rates to gradually increase towards 4.5% between now and end of 2016.

Many buyers focus on housing prices, forgetting that financing costs can be even more costly over the lifespan of the mortgage if mortgage interest is higher months from now.  Higher mortgage rates will be an even great factor as it appears that most Silicon Valley communities have seen housing prices level towards a moderate appreciation rate.


The Silicon Valley real estate market is currently shifting towards a more moderate market where professional experience, insights and negotiations are increasingly valuable. Juliana and Karl Lee empower their clients with relevant information to guide decisions that maximize opportunities and minimize costly outcomes. The power of information is magnified in Silicon Valley/Bay Area, one of the most expensive housing markets in the United States.

Silicon Valley/Bay Area has been a destination real estate market for decades.  Visit our website often for current market trends, regulatory changes affecting home ownership and local community happenings.  Benefit from the same insights that Juliana and Karl’s thousands of Silicon Valley/Bay Area clients have experienced.