Rising interest rates affect California housing market

Mortgage rates are likely to remain high despite the Federal Reserve’s pause on interest rate hikes.

While that may be good sign for fixed-income funds in California, the pause is a blow to affordable housing in the state, said Fiona Ma, California state treasurer, during the CNBC Financial Advisor Summit. 

The Fed announced Wednesday it would hold interest rates steady in June, after the committee had hiked borrowing rates 10 times since March 2022. Policymakers said they anticipate two quarter-point interest rate increases are forecasted for later this year.

In California, a state where the cost…