Mortgage rate drop could give Bay Area buyers $136K more in buying power than they had in August

With the Federal Reserve's aggressive rate cut, Bay Area house hunters can now afford much more house, enhancing their buying power significantly from August.

At a current interest rate of 6.09%, a Bay Area home buyer can afford a home priced $51,187 higher than they could in August when rates were 6.47%.

If mortgage rates fall to 5.50%, the buying power of home buyers could increase by $136,239 over August, allowing more expensive purchases.

Experts note that while buyers may feel increased buying power, demand could rise, pushing home prices up rather than allowing for larger homes.

Read at www.mercurynews.com