Why lower interest rates likely won’t make housing more affordable in Silicon Valley

A recent study indicates that the San Francisco and San Jose metro areas will see minimal benefits from lower mortgage rates, with less than a 4% increase in affordability. Despite a recent Federal Reserve rate cut, high demand and low inventory in Silicon Valley may prevent significant price reductions. Lower rates could ease mortgage qualifications and boost demand, but may also lead to higher home prices due to increased competition. Additionally, lower rates might encourage more homeowners to sell, potentially increasing housing inventory.