San Francisco

The Wall Street Journal: Coastal Cities See Highest Mortgage Rate Increases

The National Association of Realtors expects rates to rise in 2017 and 2018.

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Cities on the coast are being hit the hardest by mortgage rate increases. Prior to the 2016 presidential election, the average rate for a 30-year mortgage was 3.5 percent. But now, that number has climbed to 4.12 percent. And as rates continue to climb, coastal cities ae expected to continue feeling more pain.

According to a recent analysis by the National Association of Realtors cited in The Wall Street Journal, home buyers in San Francisco County have seen the biggest rate increase. Monthly mortgage payments in the area have risen by nearly $375. However, some experts think that home owners are reaching a limit of what they’re able to afford.

In an interview with The Wall Street Journal, Silicon Valley Realtor Jess Barnett said, “Unless you have unlimited funds, every little tick up in the interest rate lets you buy less and takes people out of the market if they’re struggling to buy their first home.”

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