Cheap Mortgage Rates May Fuel a Rapid Rise in Home Prices, Forecast Warns

Dusty Rhodes • February 3, 2020

The lowest midwinter mortgage rates in history have contributed to an unusual early-year surge in homebuying that's likely to lead to spiking home prices later in 2020, a new forecast from Redfin says.


The real estate brokerage says this year may bring "the most robust housing market in a decade" — which would mean big paydays for homeowners looking to sell, but a lot of anxiety for homebuyers.


Low rates are a double whammy for home prices


Mortgage rates are close to three-year lows and last week dropped to the lowest level for late January in the history of the weekly survey from mortgage giant Freddie Mac.


Redfin says the bargain-basement rates have captured the attention of homebuyers, but they're also encouraging homeowners to refinance their mortgages and stay in their homes, rather than sell.


That low-rate double whammy has resulted in strong demand for houses combined with a shortage of homes for sale — a recipe for the fastest increases in home prices in years, Redfin says.


"I’m regularly seeing homes with well over a dozen offers that sell for hundreds of thousands above list price, even in the middle of our recent snowy week," says Shoshana Godwin, a Redfin agent in Seattle.


During mid-January, the pace of homebuyers applying for mortgages hit an 11-year high. In the most recent week, demand for mortgages to buy homes rose 2%, and applications for refinance loans jumped 8%, the Mortgage Bankers Association says.


Some 9.4 million U.S. homeowners could save an average $272 per month by refinancing, according to the data firm Black Knight.


Mortgage rates trigger a buying binge


Redfin reports that homebuying during January was as busy as agents normally see during the spring, and low interest rates were a reason.


How low are we talking about? Rates on 30-year fixed-rate mortgages were averaging 3.51% in last week's Freddie Mac survey — just a couple of notches above last fall's valley of 3.49%, which was the lowest since November 2016.


Additionally, last week's average was the lowest ever recorded during the final week of January, according to Freddie Mac data going back to 1971.


At 3.51%, the benchmark mortgage rate is nearly a full percentage point below where it was a year ago, when the average was 4.46%.


Rates have been dropping as financial markets have been rocked by the fast-spreading coronavirus.


The average 15-year mortgage — which is a popular refinancing option — is down to an even 3%, and 5/1 adjustable-rate mortgages are being offered at an average initial rate of 3.24%. The rates on those "ARMs" are level for five years and then can change every year.


The advice from agents: Move fast


Thanks to the cheap rates, the housing market is moving toward what Redfin calls "the mother of all inventory crunches" this year, with demand for homes at a 10-year high but the number of houses on the market at a 20-year low.


The National Association of Realtors says the U.S. has just a three months' supply of homes available for sale. Builders are scrambling to keep up, and last month reported the largest number of groundbreakings in 13 years.


But until supplies can satisfy the hunger for homes, Redfin is warning homebuyers to prepare for bidding wars for houses and skyrocketing prices.


Godwin, the agent in Seattle is telling the buyers she's working with to be ready to move swiftly if they see a home that would work for them, and at a price they could swallow.


"In a typical year, I’d say to wait it out and expect more homes for sale in the next few months," she says, "but now I’m warning clients prices may only continue to rise and the inventory may not appear."



Source: Yahoo Finance


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Here’s Where To Start if You’re Selling and Buying at the Same Time

By Dusty Rhodes • August 3, 2026
If you’re a homeowner getting ready to move , one question usually comes first: should you buy your next home before you sell, or sell your current house before you start looking? There’s no single right answer. The best call depends on your finances, your local market, and your timeline. And a trusted agent can help you weigh all of it. But in a lot of cases these days, selling first puts you in the stronger spot. The Advantages of Selling First Selling is usually the trickier half of a move today, so getting it done first clears your biggest hurdle. And that’s especially true right now , because there are more homes for sale than there are buyers, which means houses are taking longer to sell than they did a year or two ago. So how does leading with your sale pay off? Let’s start with the money. 1. You Won’t Get Stuck Paying Two Mortgages Buy before you sell, and you could end up carrying two mortgages at once. And especially since houses are staying on the market longer these days, that overlap may drag on for more time than you’d planned. And if unexpected repairs come up, it could get even more expensive. Selling first takes that risk off the table, so you’re not multitasking homeownership. As Ramsey Solutions puts it: “It’s best to sell your old home before buying a new one to avoid unnecessary risks and possible headaches.“ 2. You Can Use Your Equity To Fuel Your Move This is always true, but one of the biggest perks of selling first is that you’ll know exactly how much money you’re walking away with. And one of the big figures that matters in that conversation is how much equity you have in your current place. Equity is basically your house’s value minus what you still owe on your mortgage. And it adds up fast. According to Realtor.com , homeowners who’ve been in their home for 5 years have about $180,000 in equity on average. And those who’ve had their home for 6-10 years? They have over $340,000. After you sell, you can use that money to cover your down payment or even buy your next home in cash. And knowing that profit up front helps you plan your next move. 3. Your Offer Will Be Hard To Pass Up When your house is already sold, you don’t have to make your offer contingent on that sale. In a market where buyers are taking their time, that’s exactly what a seller wants to see. Picture it from the seller’s side. If their house has been sitting for a while, they’ll gravitate toward the offer most likely to close without a snag. That can also give you room to ask for a little more, like repairs, since a motivated seller would rather keep things moving than lose you and wait for another offer to come in. Your agent can help you make the most of your upper hand in that scenario. Is There a Catch? Selling first has its tradeoffs too, and it helps to see the pros and cons side by side before you decide. Here’s a quick breakdown based on information from Zillow (see visual below) : 

7 Reasons to Use Real Estate Drone Photography for Your Listing

By Dusty Rhodes • July 26, 2026
Online listing photos often shape a buyer’s first impression of a home. They want to understand the home’s setting, the size of the lot, and what makes the property unique before deciding whether it’s worth a visit. That’s one reason real estate drone photography has become a popular addition to many listings. That said, aerial photography isn’t a must-have for every home. Whether you’re selling a home in Houston, TX or listing a rental in Asheville, NC , knowing when to use this style of professional photography can help highlight the features that matter most to buyers. Here are seven situations where real estate drone photography can make a listing more compelling. Key takeaways: Best for homes where the setting is part of the selling point. Shows lot size, layout, and nearby amenities at a glance. Helps buyers visualize features that aren’t visible from the ground. Less valuable for standard homes on small lots. Should be performed by a licensed drone operator following local regulations. 1. The property sits on a large lot or acreage Large properties are difficult to capture from the ground. Aerial photos show the property’s full footprint and help buyers appreciate how much land they’re getting. Bradley Harkey, owner at LuxRE Photos , says drone photography is especially valuable for homes with room to grow. “Drone photography can really be essential when you are selling a home with a lot of land. A view from above can showcase the potential even when it’s not exactly obvious from the ground.” He says buyers often struggle to picture what an undeveloped yard could become. “Oftentimes an unprepped backyard can just look like a bunch of weeds to a potential buyer, but when seen from above, you can visualize where that pool can go, or that basketball hoop, or that go-kart track you always wanted as a kid. Some homes have so much potential, but it’s hard to see between the weeds.” Whether it’s acreage, an equestrian property , or simply a spacious backyard, aerial images help buyers see the property’s potential. 2. The home has waterfront views or scenic surroundings Some of a home’s best features aren’t visible from the front yard. Waterfront access, mountain views, wooded privacy, and distinctive architecture all benefit from an elevated perspective. Doug Smith, principal and founder of Houzpics LLC , explains, “Aerial photography is especially valuable for waterfront or estates with large, feature-rich lots, multi-story architecture, and homes with scenic surroundings. Aerial images help buyers understand the property’s layout and highlight features that traditional ground-level photos may not fully capture.” Rather than focusing only on the home, aerial photography showcases the entire setting.

Psychology says people who keep going back to the beach aren’t just relaxing, they may be restoring something deeper

By Dusty Rhodes • July 21, 2026
Some people enjoy the beach. Others seem drawn to it. They choose beach vacations over city breaks. They find excuses to visit the coast whenever they can. They feel calmer the moment they hear waves crashing or catch sight of the ocean on the horizon. Friends and family may joke that they're "obsessed" with the beach, but psychology suggests there may be more happening beneath the surface. For many people, a love of the beach is not simply about sunshine, swimming, or beautiful views. Research suggests that coastal environments may provide something the modern brain desperately needs: a chance to recover from constant mental demands. Attention Restoration Theory may explain the attraction to the beach One of the most influential explanations comes from Attention Restoration Theory, developed by environmental psychologists Rachel Kaplan and Stephen Kaplan. The theory suggests that everyday life requires large amounts of what researchers call directed attention. This is the mental effort people use to focus during meetings, answer emails, ignore distractions, make decisions, navigate traffic, and manage responsibilities. Over time, directed attention becomes fatigued. Natural environments appear to affect the brain differently. The Kaplans proposed that nature creates a state known as soft fascination. Instead of demanding concentration, environments such as beaches gently hold attention without effort. As a result, the brain gets an opportunity to recover from mental fatigue . For frequent beachgoers, this may help explain why a few hours by the ocean often feels more restorative than an entire day spent indoors. Research on blue spaces supports the idea Psychologists and public health researchers often use the term blue spaces to describe environments that contain visible water, including oceans, lakes, rivers, and coastlines. Over the past decade, a growing body of research has linked blue-space exposure to improved psychological well-being . A 2020 research, Blue space, health and well-being: A narrative overview and synthesis of potential benefits, led by environmental psychologist Mathew White has found that people who spend more time near coastal environments often report better mental health and higher life satisfaction. The authors propose that water environments may improve mental health through several connected pathways: Increased physical activity (people walk, swim, or move more near water) Psychological restoration (reduced mental fatigue and stress) Social interaction (waterfronts often encourage gathering and recreation) Environmental effects such as improved air quality and aesthetic satisfaction Importantly, the review also highlights that blue spaces share similarities with green spaces (like parks and forests), but water environments may have unique psychological effects due to their sensory characteristics and emotional associations. Why the ocean feels different from other environments Many people report feeling calmer almost immediately when they arrive at the beach. Psychologists believe part of the reason may be the unique combination of sensory experiences. The sound of waves is rhythmic and predictable. The horizon creates a sense of openness. The movement of water captures attention without overwhelming it. Unlike social media feeds, traffic, news alerts, and crowded urban environments, the beach provides relatively low levels of cognitive demand. In simple terms, the ocean gives the brain less work to do. That reduction in mental effort may help explain why people often describe feeling lighter, calmer, or more clear-headed after spending time near the water. Place Attachment Theory says beaches can become part of identity For some people, the connection goes beyond relaxation. Psychologists study a concept known as place attachment, which refers to the emotional bond people develop with specific locations. Certain places become connected to family memories, childhood experiences, important life events, or feelings of belonging. Over time, the beach may become more than a destination. It becomes part of a person's identity. This may explain why some individuals return to the same stretch of coastline year after year, even when countless other travel options are available.