Homebuyer Activity Is Picking Up in Time for Spring

As more buyers enter the market, the spring season looks to be heating up in the home market. And, after increasing mortgage rates kept so many buyers out of the market last year, that's a favorable indication for sellers. Realtor.com provides the most recent information:

“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.”

Because of mortgage purchase application statistics, we know that buyer activity is increasing. According to Investopedia:

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

That is, the amount of mortgage applications indicates how many purchasers are looking for loans. In other words, a rise in mortgage applications indicates an increase in buyer demand, and as Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), noted, application activity began to pick up in March as mortgage rates continued to fall steadily:

“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 reality, we can monitor how mortgage rates affect applicants over time. As interest rates increased considerably last year, applications decreased in response (see graph below):

The recent increase in mortgage applications, along with the recent fall in mortgage rates, is excellent news for sellers since it indicates that more buyers are actively shopping for houses.

What This Means for You

Buyers are expected in spring, which is traditionally the busiest season in real estate. And, according to Realtor.com, if you're a seller, you should prepare:

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

Working with a local real estate agent to optimize your home's attractiveness and have it listed at the best price for your region is what this entails.

Bottom Line

The housing market is getting ready for spring. If you're considering selling your home and taking advantage of the current increase in buyer activity, work with a local real estate agent.