Here are the 13 US housing markets that would be most affected by rising interest rates

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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 homebuying plans even if rates increase their monthly mortgage payment by $100," Zillow said in a press release.

Higher rates would, however, 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%)."

When it comes to the impact of a rate hike on monthly mortgage payments, "for the typical homebuyer shopping for the median US home, valued at $195,300," the company estimated, "an increase in mortgage rates from 4% to 4.25% would increase their monthly mortgage payment by approximately $23."

Among the states, California is likely to be most affected if the series of rate hikes predicted for 2017 do indeed occur, as the state is home to cities with the greatest rise in monthly mortgage payments (San Jose, San Francisco, Los Angeles, and San Diego).

Here are the 13 US cities that, according to Zillow, would see the highest increase in monthly mortgage payments if mortgage rates were to rise to 5% from 4%.

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13 US housing markets that would be most affected by rising interest rates
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13 US housing markets that would be most affected by rising interest rates

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

(Davel5957 via Getty Images)

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

10. Portland, Oregon

Zillow Home Value Index: $357,000

Monthly mortgage payment at 4%: $1,363

Monthly mortgage payment at 5%: $1,533

Difference in monthly mortgage payment: $170

Source: Zillow

(AndreyGatash via Getty Images)

9. Denver

Zillow Home Value Index: $356,900

Monthly mortgage payment at 4%: $1,363

Monthly mortgage payment at 5%: $1,532

Difference in monthly mortgage payment: $169

Source: Zillow

8. Washington, DC

Zillow Home Value Index: $380,900

Monthly mortgage payment at 4%: $1,455

Monthly mortgage payment at 5%: $1,636

Difference in monthly mortgage payment: $181

Source: Zillow

(sborisov via Getty Images)

7. New York City

Zillow Home Value Index: $404,800

Monthly mortgage payment at 4%: $1,546

Monthly mortgage payment at 5%: $1,738

Difference in monthly mortgage payment: $192

Source: Zillow

6. Seattle

Zillow Home Value Index: $413,900

Monthly mortgage payment at 4%: $1,581

Monthly mortgage payment at 5%: $1,778

Difference in monthly mortgage payment: $197

Source: Zillow

(aiisha5 via Getty Images)


 

5. Boston

Zillow Home Value Index: $413,900

Monthly mortgage payment at 4%: $1,581

Monthly mortgage payment at 5%: $1,778

Difference in monthly mortgage payment: $197

Source: Zillow

(SeanPavonePhoto via Getty Images)

4. San Diego

Zillow Home Value Index: $530,900

Monthly mortgage payment at 4%: $2,028

Monthly mortgage payment at 5%: $2,280

Difference in monthly mortgage payment: $252

Source: Zillow

(marlenka via Getty Images)

3. Los Angeles-Long Beach-Anaheim, California

Zillow Home Value Index: $595,700

Monthly mortgage payment at 4%: $2,275

Monthly mortgage payment at 5%: $2,558

Difference in monthly mortgage payment: $283

Source: Zillow

(Photo by DeAgostini/Getty Images)

2. San Francisco

Zillow Home Value Index: $833,600

Monthly mortgage payment at 4%: $3,184

Monthly mortgage payment at 5%: $3,580

Difference in monthly mortgage payment: $396

Source: Zillow

(Ershov_Maks via Getty Images)

1. San Jose, California

Zillow Home Value Index: $970,000

Monthly mortgage payment at 4%: $3,705

Monthly mortgage payment at 5%: $4,166

Difference in monthly mortgage payment: $461

Source: Zillow

(Nancy Nehring via Getty Images)

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