Even as storms hit Massachusetts several times last month, the Greater Boston real estate market grew more competitive, at least by one measure.

Redfin’s monthly report of how many bidding wars its buyer’s agents encountered in the area shows 64.1 percent of offers they wrote for homes in the five-county Greater Boston area faced bidding wars in February, up from 55.9 percent in January.

That puts the metro in 13th place for the hottest market conditions among the areas Redfin operates in, with buyers in cities like Philadelphia, Sacramento and Las Vegas facing similar conditions but cities like Seattle, the San Francisco Bay area and Salt Lake City, Utah seeing substantially greater competition.

Nationwide, 60.9 percent of offers written by Redfin agents faced competition last month, up from 59.3 percent in January.

Mortgage rates, however, have started moving higher. The average interest rate for a 30-year fixed-rate mortgage is now about 3.17 percent according to Freddie Mac, compared with 2.67 percent at the end of 2020. For now, Redfin says, this appears to be increasing urgency among homebuyers rather than scaring them off.

“The uptick in mortgage rates is likely fueling more bidding wars in the short term because house hunters are rushing to buy homes before rates rise even further,” Redfin Chief Economist Daryl Fairweather said in a statement. “If mortgage rates move significantly higher, we’ll likely see some buyers move to the sidelines, which will curb competition in the long run.”

According to a recent Redfin survey, 17 percent of people would slow down their home searches if mortgage rates surpassed 3.5 percent.

Bidding Wars Up Month-Over-Month

by Banker & Tradesman time to read: 1 min
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