The stock market just hit new record highs and the Fed is rumored to be lowering interest rates soon, which will hopefully result in lower rates on mortgages. These two events should increase a home buyer’s purchasing power. Yes, it could be easily argued that home prices are already insanely high, but local home prices have tended to follow the stock market. Recently, the real estate market has slowed a bit in San Mateo County, will these events turn up the heat again? Of course this all depends on the stock market remaining at record high levels going forward. Time will tell.