Buyers are taking advantage of the warmer weather and increased inventory as they look to jump into the market after mortgage rates fell to record lows recently. Homes are selling quickly, as more and more buyers enter the fray, and sellers are feeling the positive effects. Prices continue to rise, pushing many buyers to take advantage of historically low rates and begin their home-buying journey. Realtor.com has the latest:

“Spring is officially here, and like green shoots emerging from the bleak winter, new data suggests that more buyers are back in the market, although more subdued compared to a year ago.”

We know buyer activity is trending up because of mortgage purchase application data. According to Investopedia:

“A mortgage application is a document submitted to a lender when you apply for a mortgage to purchase real estate.”

According to Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), mortgage applications have risen significantly as mortgage rates have dropped. This trend indicates that buyers are taking advantage of the lower rates and getting into the market. As application activity increases so does buyer demand, which can lead to higher home prices. With the current low rates, buyers should act fast to take advantage of the great deals available and get themselves into a home before the rates rise again.

“Application activity increased as mortgage rates declined . . . recent increases, along with data from other sources showing an uptick in home sales, is a welcome development.”

In fact, we can see how mortgage rates have a direct impact on applications over time. As rates rose dramatically last year, applications fell in response (see graph below):

The recent uptick in mortgage applications, as well as the decline in mortgage rates, is good news for sellers because it means more buyers are actively looking for homes.

What This Means for You

Buyers are coming this spring, which is typically the busiest time of the year in real estate. And as Realtor.com tells us, if you’re a seller, you need to prepare:

“If homeowners are planning to sell in 2023, now is the time to get ready.”

The means working with a local real estate agent to maximize your home’s appeal and get it listed at the ideal price for your area.

Bottom Line

The housing market is warming up for spring. If you’re thinking about selling your house and taking advantage of this recent uptick in buyer activity, let’s connect.