Bidding Wars Show Signs of Cooling as Mortgage Rates Bite

Fewer homes are receiving multiple offers as higher borrowing costs limit buyers, according to Redfin

A home for sale in Miami, Florida.Photographer: Scott McIntyre/Bloomberg
Lock
This article is for subscribers only.

The days of homebuyers getting into knock-down-drag-out bidding wars may soon be over.

After two years of a pandemic-driven buying frenzy that sent home values soaring, the competition for listings is showing signs of cooling off as mortgage rates hit the highest level since 2009. According to a new Redfin report, 61% of home offers faced bidding wars in April, down from 63% a month earlier and 67% in the same period of 2021. An offer is considered part of a bidding war if a Redfin agent received at least one other competing bid.