Rising home prices and interest rates have heightened the intensity of an already strong seller's market, and many homebuyers in several cities may see a bigger monthly mortgage payment as a result.
“For many buyers, it will be a choice of selecting a lower-priced home, and perhaps giving up some desired home features to get into that lower price range, or digging deeper into their wallets, if they want to close," says Realtor.com chief economist Danielle Hale. Matthew Gardner, chief economist of Windermere Real Estate, reminds that, "From a historic perspective, mortgage rates in general are still remarkably cheap."
According to Hale's analysis ... [these] markets will also see significant mortgage payment increases: San Francisco ($378), Los Angeles ($363), San Diego ($242), Minneapolis ($236), and Atlanta ($213). That's because U.S. home listing prices on realtor.com have increased 10 percent on average over the past year. Interest rates on a 30-year fixed-rate mortgage have increased 2.8 percent.