Yes! From my 19 years of real estate experience in the SF Mid Peninsula, interest rate reduction has always assisted in stimulating our local real estate market. And, with higher conforming limits from 417K, theoretically, this will make it more affordable to make purchases in the SF Bay Area. If our conforming limits increase, I do believe the old conforming and jumbo rates will be averaged out to accomodate the higher limits. Qualifications for these loans, however, will be another key to stimulating our market...
During Jan '08, with news of our country being on the "verge of recession", I have participated in a sale of one of my listings, as well as start seeing homes selling in areas that have had 140+ DOM. In fact, we just got beat out in a multiple offer situation. This is despite more short sale/reo properties in the market. Of course, increased days on market resulting in lower list prices, coupled with lower and more attractive interest rates are resulting in homes selling. - Fri Feb 1 2008, 07:16