US homebuyers are most concerned about rising interest rates, but they still plan to go ahead with their initial buying plans, according to survey results released by Zillow Group Mortgages.
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Here are the 13 US housing markets that would be most affected by rising interest rates
California is likely to be most affected in the event of a series of interest-rate hikes.
San Diego.
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"Most people (83 percent) planning to buy within the next three years will continue with their homebuying plans even if rates increase their monthly mortgage payment by $100," Zillow said in a press release.
Higher rates would, however, limit buyer choices. According to Zillow, "a quarter of home shoppers claim they would reconsider the type of home they are searching for, such as looking for a smaller home or less expensive community, should their monthly payment increase by up to $100 (25%)."
When it comes to the impact of a rate hike on monthly mortgage payments, "for the typical homebuyer shopping for the median US home, valued at $195,300," the company estimated, "an increase in mortgage rates from 4% to 4.25% would increase their monthly mortgage payment by approximately $23."
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Among the states, California is likely to be most affected if the series of rate hikes predicted for 2017 do indeed occur, as the state is home to cities with the greatest rise in monthly mortgage payments (San Jose, San Francisco, Los Angeles, and San Diego).
Here are the 13 US cities that, according to Zillow, would see the highest increase in monthly mortgage payments if mortgage rates were to rise to 5% from 4%.
13. Austin, Texas
Zillow Home Value Index: $263,400
Monthly mortgage payment at 4%: $1,006
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Monthly mortgage payment at 5%: $1,131
Source: Zillow
12. Riverside, California
Zillow Home Value Index: $321,200
Monthly mortgage payment at 4%: $1,227
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Monthly mortgage payment at 5%: $1,380
Source: Zillow
11. Sacramento, California
Zillow Home Value Index: $355,000
Monthly mortgage payment at 4%: $1,356
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Monthly mortgage payment at 5%: $1,525
Source: Zillow
10. Portland, Oregon
Zillow Home Value Index: $357,000
Monthly mortgage payment at 4%: $1,363
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Monthly mortgage payment at 5%: $1,533
Source: Zillow
9. Denver
Zillow Home Value Index: $356,900
Monthly mortgage payment at 4%: $1,363
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Monthly mortgage payment at 5%: $1,532
Source: Zillow
8. Washington, DC
Zillow Home Value Index: $380,900
Monthly mortgage payment at 4%: $1,455
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Monthly mortgage payment at 5%: $1,636
Source: Zillow
7. New York City
Zillow Home Value Index: $404,800
Monthly mortgage payment at 4%: $1,546
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Monthly mortgage payment at 5%: $1,738
Source: Zillow
6. Seattle
Zillow Home Value Index: $413,900
Monthly mortgage payment at 4%: $1,581
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Monthly mortgage payment at 5%: $1,778
Source: Zillow
5. Boston
Zillow Home Value Index: $413,900
Monthly mortgage payment at 4%: $1,581
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Monthly mortgage payment at 5%: $1,778
Source: Zillow
4. San Diego
Zillow Home Value Index: $530,900
Monthly mortgage payment at 4%: $2,028
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Monthly mortgage payment at 5%: $2,280
Source: Zillow
3. Los Angeles-Long Beach-Anaheim, California
Zillow Home Value Index: $595,700
Monthly mortgage payment at 4%: $2,275
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Monthly mortgage payment at 5%: $2,558
Source: Zillow
2. San Francisco
Zillow Home Value Index: $833,600
Monthly mortgage payment at 4%: $3,184
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Monthly mortgage payment at 5%: $3,580
Source: Zillow
1. San Jose, California
Zillow Home Value Index: $970,000
Monthly mortgage payment at 4%: $3,705
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Monthly mortgage payment at 5%: $4,166
Source: Zillow
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