Lower interest rates perk up May home sales as median price reaches another high

California’s median home price edged higher to another peak for the second straight month as lower interest rates helped bolster home sales in May, the CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) said today. 

“While lower interest rates have spurred buyer demand in recent months, they also have played a role in ongoing price hikes,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “Buyers could offer higher prices without hurting their bottom lines and maintain the same level of affordability, as rates remain on a downward trend. With mortgage rates expected to stay low in the upcoming months, home prices may inch up further for another month or two before cooling off.”