“When interest rates go up, it’s more expensive to borrow, and most people can’t afford to pay cash for a house, especially in an expensive area like San Diego, so they need to take out a mortgage,” University of San Diego Economics Professor Alan Gin said."With higher interest rates, they have to pay more in interest, so their monthly payment is a lot higher, and that will price some people out of the housing market."Sign up for NBC San Diego newsletters.
“What we are seeing is a little bit of a slowdown in terms of transactions because people can’t afford to buy houses, so there’s reduced demand for houses and that affects other parts of the economy,” Gin said. The U.S. Federal Reserve has been raising interest rates to combat inflation. Many economists expect interest rates to stabilize or be lowered in 2024 if inflation cools.“Right now, it actually might be a good idea to get your foot in the door, literally," Realtor Destiny Roxas told NBC 7.
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