Comparing the Santa Cruz Bay Area first quarter Real Estate sales of 2015 to the second quarter of 2015, the buyer affordability index has dropped from 34% to 30%. This will continue to be the trend as prices go up and inventory levels stay low. One other looming factor is interest rate, there is current speculation that the Fed will raise the lending rate in September. If this becomes a reality the index might experience an even bigger drop. If you are in the market for a home it might be wise to lock your rate in this month.