Even 5-6% would do it, since affordability in San Diego sucks at present. A little bit is enough to gently nudge people into not qualifying, unlike in other markets where median income and price are more in line. As well as reduce the spread between income from holding property and income from interest, making property less attractive.
And if you don’t think the Fed is a political animal, you’e kidding yourself. How do members of the board get appointed and confirmed? 🙂
