Even as mortgage interest rates rise, homebuyers have remained active in many popular US real estate markets. In fact, the number of homes that received an average number of double-digit visits increased in February, according to ShowingTime dataa technology provider and a display management system.
A total of 109 markets averaged double-digit projections in February, a 45% increase from 75 markets in February 2021, according to ShowingTime.
This home buying activity is occurring despite a steady rise in interest rates. At the end of February, the average 30-year fixed-rate mortgage had risen to 3.89%, up almost a percentage point from 2.97% at the end of February 2021, according to data by Freddie Mac.
If you’re interested in buying a home, comparing mortgage rates and lenders can help you save money on your monthly payment and over the term of the loan. You can visit Credible to find your personalized interest rate without affecting your credit score.
MORTGAGE RATES ARE RISING BY A QUARTER PERCENTAGE POINT – HERE’S WHY YOU SHOULD LOCK YOUR RATE NOW
Major Housing Markets in the United States
According to data from ShowingTime, many U.S. markets have matched or exceeded last year’s intense homebuyer demand. Nashville posted the biggest annual gain, with its projections jumping 43% from a year ago. This was followed by:
- Orlando, Florida – 36%
- Bridgeport, Connecticut – 30%
- Dallas, TX – 29%
- Hartford, Conn. – 28%
- Sarasota, Florida – 28%
- Charlotte, North Carolina – 24%
“To see 109 markets with such impressive shopper traffic is remarkable,” said Michael Lane, vice president and general manager of ShowingTime. “A year ago, we were amazed to see 75 markets hit double digits per listing. The increased activity is widespread, with 17 states having at least one market averaging double digits.”
Even traditionally less traveled metropolitan areas face inventory challenges as they move up the rankings in today’s major real estate markets. The data showed a shift in the hottest housing markets, in part because homebuyers have more location flexibility after the COVID-19 pandemic shifted more businesses to remote working. Since more remote job opportunities became available, homebuyers began to look at other factors such as good weather, nice beaches, or less crowding in the suburbs.
If you want to know how much your monthly mortgage payment is in your real estate market, you can visit Credible to see rates from multiple lenders at once and choose the best for you.
THE AVERAGE OWNER EARNED MORE THAN $55,000 IN EQUITY IN 2021: CORELOGIC REPORT
How owners can cash out on demand
Rising demand for housing has pushed up home values, with the average homeowner earning more than $55,000 in equity in 2021, according to CoreLogic.
One way for homeowners to take advantage of this demand is to sell their home and enjoy the profits they have made over the past year. However, these residents would then likely become homebuyers and face increased competition, house price appreciation and rising mortgage rates when they purchase their next home.
Homeowners can also consider cash refinancing and put the equity in their home toward home improvement projects or paying off high-interest debt. Refinancing could also help homeowners lower their interest rate and monthly payments. However, if they already have a low interest rate, a home equity line of credit (HELOC) might be a better option as it takes out a second loan against the equity in the home rather than refinancing the entire the mortgage at a new rate.
If you are interested in refinancing your mortgage or want to see your options, you can contact Credible to speak to a mortgage expert and get all your questions answered.
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