Bay Area Market, Interest, and Student Loan News

The Bay Area real estate market has experienced a general downward trend since 2022, with several counties witnessing a decline in housing prices. However, amidst this trend, there are a few exceptions that stand out. Counties like Contra Costa, Napa, and Solano have emerged as favorable options for homebuyers due to their affordability compared to the other nine counties.

Notably, San Francisco has shown the greatest decline since 2019, with a notable 7.06% decrease in housing prices. With this in mind, many may wonder if it is a good time to buy. Despite the fluctuations, the market overall remains robust, primarily due to low inventory levels, which help sustain property values and keep them steady.

Interest Rates

Today’s weekly average 30-year interest rate reading climbed from last week (but will not reflect any reaction to the new inflation report), but the daily average interest rate illustrated in the 2nd chart below, had a significant, if preliminary, reaction to yesterday’s CPI: Falling almost a quarter point in 2 days.

Profile of Owners and Renters

Biden administration forgives $39 billion in student debt for more than 800,000 borrowers

The Biden administration announced the automatic forgiveness of $39 billion in student debt for 804,000 borrowers. This relief resulted from improvements to the income-driven repayment plans. Previously, payments that should have counted towards forgiveness were not accounted for. The administration rectified this by considering payments made during deferments, forbearances, and late or partial payments.

While a significant victory, this forgiveness only addresses a portion of the larger issue with the dysfunctional student loan system. The Supreme Court recently rejected President Biden’s broader student loan forgiveness plan. Eligible borrowers will receive notifications from the Education Department soon.