(Central News Agency reporter Zhang Xinyu, San Francisco, 4th, special report) U.S. long-term government bond yields remain high, and the average interest rate on 30-year fixed mortgages rose to 6.71%. High interest rates increase the monthly repayment pressure on home buyers and increase the financing costs of residential developers. In the San Francisco Bay Area, where the AI industry has driven some demand for high-priced homes and the housing supply is tight, home buyers and renters may face a heavier housing burden.
The Federal Home Loan Mortgage Corporation (Freddie Mac, referred to as Freddie Mac) announced that the average interest rate on 30-year fixed mortgage loans in the United States rose to 6.71% in the week ending September 3, a new high since July 2025.
Calculated based on a loan principal of US$1 million (approximately NT$31.6 million) and a 30-year fixed-rate mortgage, when the interest rate is 3.5%, the monthly principal and interest is approximately US$4,490; after the interest rate rises to 6.7%, it increases to approximately US$6,450, a difference of approximately US$1,960.
Seoyoung Kim, dean and associate professor of finance at Santa Clara University, pointed out in an interview with Central News Agency that "for the average American family, nearly $2,000 more per month is a very large burden," and this does not include housing taxes, home insurance, home maintenance and other home ownership costs.
This pressure is even more pronounced in the San Francisco Bay Area. Local housing prices are already much higher than the national average. The high salaries and equity wealth brought about by the recent rapid development of the artificial intelligence (AI) industry have further supported the demand for home purchases in some areas, causing high housing prices and high mortgage interest rates to simultaneously squeeze ordinary home buyers.
The Associated Press recently reported that many high-income employees of AI companies are buying multi-million-dollar homes in the Bay Area and are less sensitive to high mortgage interest rates and high housing prices. In the first half of this year, the number of luxury homes in the San Francisco metropolitan area increased by 39.3% year-on-year, and the number of mid-priced homes increased by 15.1% year-on-year.
"High interest rates not only increase the mortgage burden of home buyers, but also push up the financing costs of apartment developers." Jin Ruiying said that because developers also rely on borrowings, the increased costs may eventually be reflected in rents, and renters will also be affected.
According to data from rent tracking website Zumper, rents in San Francisco continued to set new records in August, rising 2.9% from July. The median rent for a one-bedroom apartment rose to US$4,300 per month, an increase of nearly 26% from the same period last year.
In comparison, the median rent for a one-bedroom home in Los Angeles fell 4% from the same period last year. The rent gap between the two places has widened.
Stone originally lived in downtown San Francisco. He told CNA that the monthly rent for the one-bedroom apartment he originally rented was US$3,500, which was recently increased to nearly US$4,500, so he decided to move to Walnut Creek in East Bay.
Jin Ruiying pointed out that compared with cities with better public transportation such as New York, some people in the San Francisco Bay Area usually rely more on cars after moving to distant areas to reduce housing costs. In addition to rent or mortgage loans, they also have to bear car loans and higher commuting costs. This makes the general public in the Bay Area feel even more acutely about high interest rates and high housing costs.
Regarding the future trend of long-term U.S. bond yields, Jin Ruiying said that the market does not have a "crystal ball" that can accurately predict. However, judging from the current situation, she does not believe that there will be a significant decline in the next six months, nor does she rule out the possibility of further increases.
