Buyer Demand Is Stirring Again — Here’s What Sellers Need to Know

The housing market is showing more energy than it has in quite some time—and the data supports it. Mortgage rates have fallen nearly a full percentage point this year, and buyers are starting to respond.

Loan applications are climbing. Activity is increasing. And sellers who move early may benefit from this shift before more listings flood the market.

Let’s break down what’s driving the momentum and how you can position yourself to take advantage of it.

As Rates Ease, Buyer Activity Rises

In today’s market, buyer demand moves almost in lockstep with mortgage rates. When rates decline, more buyers step back in—and home loan applications follow. Rick Sharga, Founder and CEO of CJ Patrick Company, sums it up this way:

“We’re in a highly rate-sensitive market. Each time mortgage rates dip into the low-to-mid 6% range, we see a noticeable wave of buyers return.”

And the numbers back this up. Buyers who had been sitting on the sidelines are re-entering the market as borrowing costs ease. Activity will naturally rise and fall alongside rates, but the broader trend is clear: demand has improved overall since rates began to decline.

According to the Mortgage Bankers Association (MBA), the Mortgage Purchase Index is now sitting at its highest level so far this year:

And that’s not the only encouraging signal. The MBA reports mortgage applications have recently reached their highest level in nearly three years—a clear indication that buyer demand is trending upward as we head toward 2026.

And to be clear, this isn’t simply delayed demand from the government shutdown that temporarily slowed parts of the loan process. The previous data shows a steady buildup in activity throughout the year—not a one-time spike.

The key takeaway is this: as rates have eased, buyers are gradually re-entering the market, and that renewed interest is translating into real offers and signed contracts on homes like yours.

Home Sales Are Gaining Momentum

To further confirm the positive trend, the latest report from the National Association of Realtors (NAR) shows that pending home sales—homes currently under contract—are increasing as well. The Pending Home Sales Index is now at its highest level of the year (see graph below):

All of this points to a market finishing the year with momentum and heading into 2026 with renewed energy. While it may not feel dramatic day to day, it represents a meaningful rebound that’s worth paying attention to.

Pending home sales are a leading indicator of future closings. When more homes are going under contract, it typically signals an increase in completed sales over the following months. That’s one reason many experts expect home sales in 2026 to edge higher than in 2025 and 2024.

There may be some short-term fluctuations as mortgage rates move around near year-end, but those shifts aren’t expected to derail the broader trend. Forecasts suggest rates will remain relatively stable throughout 2026—setting the stage for this momentum to carry into the new year.

What This Means for You

Here’s the opportunity. Selling now can mean:

• Stronger buyer interest. As affordability improves, more buyers are re-entering the market—leading to increased showings and activity when a home is priced and presented correctly. Many of these buyers feel like they’ve already waited long enough, which often makes them more motivated to move forward.
• A head start on the market. Listing sooner positions you ahead of other sellers who haven’t yet realized conditions are shifting, helping you compete before inventory builds back up.

If you’ve been holding off because it felt like buyers were on pause—or if you previously listed and didn’t see the response you expected—this may be the moment to reconsider your timing.

Bottom Line

Curious how buyer activity is shaping up in your local market—and what that momentum could mean for you if selling is on your radar in the new year? The trends are shifting, and timing is starting to matter again.

A conversation with a knowledgeable agent can help you understand what’s happening on the ground, how buyers are behaving in your area, and whether listing early in 2026 could put you in a stronger position. With momentum building, the right strategy now could help you get ahead of the next wave of competition.

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