Low mortgage rates could mean another hot winter in the housing market

Last January was the most active month in some U.S. markets

New York /
Jan.January 26, 2020 09:00 AM
Is January the new April for real estate? (Credit: iStock)

Is January the new April for real estate? (Credit: iStock)

Homebuyers and sellers are getting an early start to the spring housing market.

Between 2015 and 2018, April was the hottest month of the year on Realtor.com, but January was the hottest in several markets across the country last year, according to a report by NBC.
Mortgage rates have fallen a full percentage point since October 2018 to around 3.7 percent, so there could be a repeat of last year. Low interest rates are bringing more buyers to the market.

“There’s even some talk that [interest rates] might go a little bit lower,” said Corey Burr of Washington D.C.-area’s TTR Sotheby’s International Realty. “But if I were a buyer right now, I’d be very satisfied with a 30-year mortgage at three and a half percent.”

Markets around the nation’s largest metros, including the Bay Area, Boston, and Washington, D.C. are among the most competitive in the country. Activity around the nation’s capital has been particularly strong since Amazon announced it would open a campus in Crystal City in late 2018.

The national market overall however is less competitive than it’s been in recent years. Only 12 percent of offers on Redfin faced bidding wars last year, compared to 48 percent in 2018 and 53 percent in 2017. [NBC]Dennis Lynch


Related Articles

arrow_forward_ios
Single-family rentals are increasingly seen as a more realistic alternative to ownership, given the hot housing market and income inequality. (iStock)
Single-family rentals soaring in hot housing market
Single-family rentals soaring in hot housing market
Investors home purchases rose to 15 percent in the second quarter, a year-over-year increase of 3.9 percentage points. (iStock)
Investors take bigger bite of US housing, and pay less
Investors take bigger bite of US housing, and pay less
Existing home sales were on the upswing in September following a slight dip in August. (iStock)
Existing home sales rebound in September, rising by 7%
Existing home sales rebound in September, rising by 7%
Judge trashes 421a rent overcharge suit against Muss
Judge trashes 421a rent overcharge suit against Muss
Judge trashes 421a rent overcharge suit against Muss
Low interest rates and the capability for some to work from home is helping fuel the market for vacation homes, a new survey indicates. (iStock)
Pandemic continues to fuel demand for second, third homes
Pandemic continues to fuel demand for second, third homes
15 Farm Springs Road, Farmington, CT and The Boulevard in Yaphank, LI
(Google Maps, TheBoulevardNY.com)
Connecticut, Long Island projects show how pandemic has changed real estate
Connecticut, Long Island projects show how pandemic has changed real estate
Hudson Valley housing market remains hot in Q3
Hudson Valley housing market remains hot in Q3
Hudson Valley housing market remains hot in Q3
Luxury agents are sealing deals with yacht tours, helicopter rides
Luxury agents are sealing deals with yacht tours, helicopter rides
Luxury agents are sealing deals with yacht tours, helicopter rides
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...