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Turmoil in the US banking sector is already having spillover effects on the nation’s struggling housing market, which has been hammered by surging mortgage rates over the past year, according to industry experts.

The US economy was rattled this week as the implosions of Silicon Valley Bank, Signature Bank of New York and Silvergate Capital raised concerns about spreading contagion. Those fears were heightened Friday as investors observed trouble at two other banks – Credit Suisse and First Republic.

On the negative side, the banking sector’s problems could cause further damage to home prices in activity on the West Coast – where several cities’ markets were already considered “overheated” following a pandemic-era surge.

“Some buyers are canceling their contracts or bowing out of their home search because they work in tech and they’re worried about losing their jobs,” Bay Area Redfin manager Shelley Rocha said in a statement.

“The surge in tech layoffs was already causing jitters, and now the bank failures are adding to buyers’ nerves.”