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Economy

San Diego home prices drop as mortgage rates reach 20-year high

An undated photo of a for sale sign outside a home in San Diego.
Tom Fudge
/
KPBS
An undated photo of a for sale sign outside a home in San Diego.

On Thursday, mortgage rates reached the highest they’ve been in 20 years.

The average rate for a 30-year fixed-rate mortgage topped 7%, according to federal mortgage buyer Freddie Mac's latest survey released Thursday.

The higher rates coincide with a drop in home prices in San Diego, which are among the highest in the nation, according to the S&P Case-Shiller Indices.

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"Prices in San Diego are down now for the fourth month in a row. So the median home price — that includes every type of house you can imagine — that's $795,000. So that's down from our all-time high of $850,000 in May," said Phillip Molnar, senior business reporter with The San Diego Union-Tribune. "So it's sort of a substantial drop, a 6% drop in a year."

Molnar joined KPBS Midday Edition Friday to talk more about the impact higher mortgage rates are having on San Diego's housing market.

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