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—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 today’s strong economy, people are making more money, but wages are not keeping pace with home costs, which are rising faster,” said Danielle Hale, chief economist for realtor.com.
According to Hale’s analysis of the top 20 housing markets, five other markets will also see significant mortgage payment increases: San Francisco ($378), Los Angeles ($363), San Diego ($242), Minneapolis…