Realtors see more sunny days

The spring real estate season is off to an early start as home buyers seek to take advantage of a continuation of surprisingly low mortgage rates, several brokers said yesterday.

In past years, the Massachusetts spring selling season often did not begin in earnest until the weather warmed up. But with mortgage rates at their lowest level in six months -- a surprise to some economists who expected rates to be at 6.5 percent to 7 percent by the end of the year -- many buyers are eager to move fast, realtors said, on the belief that rates will soon climb sharply.

"The spring season has already started to kick in, despite the frigid temperatures," said David S. Drinkwater, president of Grand Gables Realty Group in Scituate. "Low interest rates are one reason, and tight supply is another."

According to mortgage giant Freddie Mac, the 30-year fixed-rate mortgage averaged 5.64 percent for the week ended Jan. 22, down from 5.66 percent the previous week and at its lowest level since July. After reaching historic lows in June, the average rate exceeded 6 percent for much of August and September. A year ago, it was 5.91 percent.

"Last week, mortgage applications for home purchase hit a new record high, according to the Mortgage Bankers Association," Freddie Mac said in a statement.

A downward tick in mortgage rates is more likely to influence owners looking to refinance homes than people in the market to buy a home; what cranks up home buyers are splashy media stories about rates at historic lows, said Charlie Ball, broker/owner at Century 21 Legacy Properties Inc. in Somerville.

"It feels to me, based on anecdotes, that the market is very strong," Ball said. "Low rates are the motor helping that along."

At RE/MAX Premier Properties in Lexington, broker Judy Moore also saw signs of a strong start to the spring market. "In my community, we're seeing multiple offers again," with several buyers seeking to buy the same home, said Moore, who is also president of the Massachusetts Association of Realtors.

"People are confident that the economy is starting to turn around."

Once that turnaround gains momentum, mortgage rates will probably rise, said two economists, who expressed surprise at the current low rate. They had expected the turnaround to gain momentum sooner and, as a result, for mortgage rates to rise faster.

A jobless recovery is one reason why rates continue to stay comparatively low, said Nicholas Perna, an economic consultant in Ridgefield, Conn. When companies start hiring, something predicted to happen soon, the bond market is likely to react in a way that pushes up mortgage rates, possibly by a full percentage point by year's end, Perna said.

At Economy.com in West Chester, Pa., chief economist Mark Zandi offered a similar take. As the economy shifts into a higher gear and companies begin hiring and borrowing more, mortgage rates will probably "turn up quickly and significantly," he said.

"We could see 7 percent by year's end."

Chris Reidy can be reached at reidy@globe.com.