We’ve seen home prices marching steadily upward over the past few years, but now that mortgage rates are finally rising, too, home buyers can expect to see inflated mortgage bills, according to new data from realtor.com®.
And nowhere are those bills growing more than in the tech hubs of Seattle and San Francisco.
Buyers looking to purchase a $274,900 home (the median list price in the U.S.) can expect to pay $168 a month more for their mortgage this year as a result of higher home prices and interest rates over the past 12 months. Those in Seattle, however, will see their payments balloon by a staggering $449 a month. Home prices in the hometown of Amazon and Microsoft have surged more than 19% over the past year, according to realtor.com data.
In Seattle, rising mortgage rates are “not the chief concern among buyers,” says Chris Bajuk, a Seattle-based real estate agent at HomeSmart Real Estate Associates.
“Folks locally are more concerned with being able to get a home. They’re worried about the rapidly appreciating market and being priced out of the market,” he says.