Homebuyer Activity Is Preparing for Spring
As more buyers enter the market, the spring season appears to be heating up in the home market. And after rising mortgage rates kept so many buyers out of the market last year, that's a favorable indication for sellers. 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.”
That means the number of mortgage applications shows how many buyers are applying for mortgages. Put another way, an increase in mortgage applications means an increase in buyer demand – and as Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains, application activity started ramping up as mortgage rates fell steadily in March:
“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 (see graph below):
The recent increase in mortgage applications, as well as the fall in mortgage rates, is excellent news for sellers because it indicates that more buyers are actively looking for houses.
What This Means for You
“If homeowners are planning to sell in 2023, now is the time to get ready.”
It 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.
The housing market is heating up in preparation for spring. Let's talk if you're considering selling your home and taking advantage of the recent increase in buyer activity.