The Bay Area housing rollercoaster continues.
Even as prices are starting to come down, mortgage rates continue to soar, hitting 7% Thursday -- the highest level in more than 20 years.
The combination of higher mortgage rates and lower tech stock prices is making this a very challenging market for both buyers and sellers.
Housing prices are finally dropping, in some places by more than $200,000.
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But just when you think it’s a buyer’s market, mortgage rates hit a two-decade high.
"That's the unfortunate thing,” said Lisa Faria, president of the Santa Clara County Association of Realtors. “So, somebody could be in a position to buy, and then the interest rate goes up, and then that takes that out of the position to buy."
Faria said higher rates also make it tougher on sellers.
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"You bought your home or re-financed at 2%, and now we're over seven,” said Faria.
So your next house payment will be that much more. Not to mention the typical down payment.
The Bay Area has the highest average down payments in the country, nearly $150,000 dollars in both San Jose and San Francisco.
High enough that many teachers, like those rallying in Santa Clara, say without more reasonably-priced housing, their careers are in jeopardy.
"I know that many faculty in our district and K-12 teachers are thinking either of leaving the area or of leaving education because it's unsustainable for our families," said Marianne Kaletzky of American Federation of Teachers.
The one thing likely to bring prices down further is the apparent freefall of many tech stocks -- one of the Bay Area’s most important economic drivers.
As techies take the hit, more are going to have trouble coming up with enough cash to buy at current prices.
