Higher mortgage rates will be “a headwind” for home buyers.
“Job growth continues to be strong in California and that means people feel more comfortable buying a home and mortgage credit has been very, very tight for the average person.
Job growth hasn’t been evenly distributed throughout the state, however. That means employment’s cushioning effect against the Fed taper will be felt differently in different housing markets.
Job growth has been especially strong in the technology sector, which benefits Northern California and certain pockets of Southern California.
As a result, the taper might be felt more intensely in those areas because they don’t have much job growth to offset its effects.