Priced Out: Where Higher Rates Could Hurt Home Buyers Most

By Suzanne Woolley - 2014-01-09T16:47:41Z

Photograph by Craig Aurness/Corbis

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Pain at 6%: Denver

Monthly income devoted to mortgage bill:

• historic average: 20.1%

• at 6% interest rate: 23%

Denver missed the worst of the housing bust but has lately seen strong demand and appreciation, especially in the luxury market. Mortgage payments as a percentage of monthly income in 2013’s third quarter were 19.3. They jump to 20.6 percent of income with a mortgage at 5 percent, and 23 percent with mortgage rates at 6 percent. The median home value is expected to rise 1.3 percent by September, to $250,332. Median income is $62,731.

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