Coastal Cities Hardest Hit By Rate Increases

Courtesy National Association of Realtors
Daily Real Estate News | Monday, January 23, 2017

Home buyers along coastal housing markets are being impacted the most by rising mortgage rates over the past few weeks, according to an analysis by the National Association of REALTORS®.

The average 30-year fixed-rate mortgage went up from 3.5 percent in November to about 4.12 percent in January.

Home buyers in San Francisco County, Calif., have felt the pain of that jump the most, with nearly a $375 increase to their average monthly mortgage payments, according ton NAR’s analysis. Other markets that are seeing costs rise the most are San Mateo County, Calif.; Nantucket County, Mass.; New York County, N.Y.; and Teton County, Wyo.

Housing costs in expensive coastal markets are seeing a rapid increase in prices, due to limited housing supplies mixed with a high demand from buyers as the job markets pick up.

“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,” says Jeff Barnett, a real estate professional in Silicon Valley, told The Wall Street Journal.

But not all cities are feeling the burden of rising mortgage rates. For example, NAR’s analysis shows that Cochran County, Texas, is seeing the smallest impact from rising mortgage rates. Since the rate increases, mortgage payments have gone up just $13 a month there.

NAR is predicting further rate hikes on the horizon. They expect mortgage rates to increase to 4.4 percent by the end of 2017 and 4.8 percent in 2018.

Los Angeles County — Beach Warnings

Beach Hazard Statement
Issued: 1:34 AM PST Jan. 18, 2017 – National Weather Service

… Beach hazards statement remains in effect from Thursday
morning through Monday evening…

* hazards… another large long period west swell will bring high
surf to area beaches Thursday through Monday… with a chance
of much larger… damaging surf late Friday through Saturday.
Surf of 8 to 13 feet Thursday and Friday will possibly build
to 15 feet or higher late Friday and Saturday. The surf will
begin to subside Sunday into Monday… but is expected to
remain above high surf thresholds.

* Impacts… large… powerful and potentially damaging surf will
create dangerous ocean conditions. Coastal erosion and coastal
flooding will be possible. Frequent strong rip currents and
long-shore currents are expected. Much larger waves may occur
without warning… which can wash people off their feet in the
surf zone or off of rocks and jetties. West-facing Harbor
entrances such as Ventura Harbor may see breaking waves across
the entrance.