Mortgage Rates (Freddie Mac):
- The average 30-year fixed rate decreased this week to 6.26% vs 6.35% last week
- Another week of mortgage rates easing following the Fed’s 0.25% interest rate cut on Wednesday
- The Fed has signalled two additional cuts this year, likely in October and December. Although this will depend upon upcoming data points for inflation and the labor market!
SB 79 Approved
SB 79: Housing Near Transit
- California lawmakers have approved SB 79, Transit-Orientated Development Act, which Governor Newsom is expected to sign soon
- The bill upzones land near major transit stops to allow taller, denser housing
- Supporters say it will unlock much-needed housing supply, boost transit, and ease affordability pressures
- Critics worry about local control, neighborhood character, and fire safety
How Could This Affect Local Cities?
- In practice, change is likely to be gradual. High land costs, community resistance, and strict design rules mean areas won’t transform overnight
- The biggest impact will be around underutilized, transit-adjacent parcels where zoning flexibility already exists
SB 79 & Land Values
- Land near transit could become more valuable under SB 79, since upzoning makes parcels like parking lots or older buildings more attractive for redevelopment
- In reality, developers don’t yet know how local councils will implement the law, so the true impact on land values remains uncertain.
- Have questions or just want to talk real estate? I'm always here to connect.
