The Central Coast — which encompasses San Luis Obispo, Santa Barbara, Monterey and Santa Cruz counties — was the only major California region to see its median price increase last month vs. May 2022.
“Everybody that has a 3% mortgage, depending on what happens going forward, have little incentive to move,” Updegrove said. “There’s a fear factor built in.” Harn said nationwide, 92% of all current homeowners have a mortgage rate less than 6%, 82.5% have a rate lower than 5% and 62% have a rate lower than 4%.
However, there’s a chance more determined and higher-income buyers will ignore the high rate, with the expectation of refinancing down the line, she said.
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