Even as mortgage interest rates rise, homebuyers have remained active in many popular housing markets in the US In fact, the number of homes that received an average double-digit number of showings increased in February, according to data from ShowingTimea technology provider and showing management system.
A total of 109 markets averaged double-digit showings in February, which was a 45% increase from 75 markets in February 2021, according to ShowingTime.
This homebuying activity comes despite a steady increase in interest rates. By the end of February, the average 30-year fixed-rate mortgage had increased to 3.89%, up nearly a full percentage point from 2.97% at the end of February 2021, according to data from Freddie Mac.
If you are interested in buying a home, comparing mortgage rates and lenders can help you save money on your monthly payment and over the life of the loan. You can visit Credible to find your personalized interest rate without affecting your credit score.
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Top housing markets in the US
Many US markets matched last year’s intense homebuyer demand, or even surpassed it, according to ShowingTime’s data. Nashville saw the top annual gain, as its showings jumped 43% from last year. This was followed by:
- Orlando, Fla. – 36%
- Bridgeport, Conn. – 30%
- Dallas, Texas – 29%
- Hartford, Conn. – 28%
- Sarasota, Fla. – 28%
- Charlotte, N.C. – 24%
“Seeing 109 markets with such impressive buyer traffic is remarkable,” Michael Lane, ShowingTime’s vice president and general manager, said. “A year ago, we were amazed to see 75 markets hit double digits in showings per listing. The heightened activity is widespread, with 17 states having at least one market averaging in double digits.”
Even traditionally less-busy metro areas are seeing inventory challenges as they move up through the rankings of today’s top real estate markets. The data showed a change in the hottest housing markets, due in part to homebuyers having more location flexibility after the COVID-19 pandemic shifted more companies to remote work. Since more remote job opportunities have become available, homebuyers have begun to look at other factors such as great weather, beautiful beaches or less overcrowding in the suburbs.
If you are interested in seeing how much your monthly mortgage payment would be in your housing market, you could visit Credible to see rates from multiple lenders at once and choose the best one for you.
AVERAGE HOMEOWNER GAINED OVER $55K IN EQUITY IN 2021: CORELOGIC REPORT
How homeowners can cash-in on demand
The increased housing demand has caused home values to arise, with the average homeowner having gained more than $55,000 in equity in 2021, according to CoreLogic.
One way that homeowners can take advantage of this demand is to sell their homes and cash in on the profit they have gained over the past year. However, these residents would likely then become homebuyers and be subjected to increased competition, home price appreciation and rising mortgage rates as they purchase their next home.
Homeowners can also consider a cash-out refinance and put their home equity toward home improvement projects or paying down high-interest debt. Refinancing could also help homeowners lower their interest rate and reduce their monthly payments. However, if they already have a low interest rate, a home equity line of credit (HELOC) could be a better option since it takes out a second loan on the home’s equity rather than refinancing the entire mortgage into 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 home loan expert and get all of your questions answered.
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