The terrible fires of the past few days will probably have the same effect on local residential real estate as they have had in past occurences: reduced inventory and increased demand for housing will probably give values a short-term boost.
On another note, I personally don’t think the government will do much to directly assist homeowners who are facing foreclosure because helping out people in default will encourage others to get a break on their mortgage by going into default … therby raising the default rate. I think the market must settle itself in natural, Darwinian style. When the storm passes, as it always does, we will have a stronger and more affordable real estate market.
Interest rates didn’t change much last week, with the conforming 30-year fixed, jumbo 30-tear fixed, and FHA jumbo 30-year fixed remaining at the same levels. Where all rates began the week of November 17.