Instant Alert: Here are the 13 US housing markets that will be most affected by rising interest rates

MANAGE SUBSCRIPTIONS   |   UNSUBSCRIBE   |   VIEW ONLINE   Here are the 13 US housing markets that will be most affected by rising interest rates by Prashanth Perumal on Mar 1, 2017, 9:23 AM Advertisement 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. "Most people (83 percent) planning to buy within the next three years will continue with their home buying plans even if rates increase their monthly mortgage payment by $100," Zillow said in a press release. However, higher rates would 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 percent)." When it comes to the impact of a rate hike on monthly mortgage payments, "for the typical homebuyer shopping for the median U.S. home, valued at $195,300," the company estimated, "an increase in mortgage rates from 4 percent to 4.25 percent would increase their monthly mortgage payment by approximately $23." Among the states, California will likely be the most affected in the event if the series of rate hikes predicted for 2017 comes true since cities with the greatest rise in monthly mortgage payments (San Jose, San Francisco, Los Angeles, and San Diego) are located in the state.  Here's a list of top 13 US cities that, according to Zillow, will see the highest increase in monthly mortgage payments if mortgage rates rise from 4% to 5%. 13. Austin, Texas Zillow Home Value Index: $263,400 Monthly mortgage payment at 4%: $1,006 Monthly mortgage payment at 5%: $1,131 Difference in monthly mortgage payment: $125 Source: Zillow 12. Riverside, California Zillow Home Value Index: $321,200 Monthly mortgage payment at 4%: $1,227 Monthly mortgage payment at 5%: $1,380 Difference in monthly mortgage payment: $153 Source: Zillow 11. Sacramento, California Zillow Home Value Index: $355,000 Monthly mortgage payment at 4%: $1,356 Monthly mortgage payment at 5%: $1,525 Difference in monthly mortgage payment: $169 Source: Zillow See the rest of the story at Business Insider   Share the latest business news with your network:    Email sent to:   |   Manage your email preferences   |   Unsubscribe Terms of Service   |   Privacy Policy Business Insider. 150 Fifth Avenue, New York, NY 10011