Springing into Action: Homebuyer Activity Heats Up for the Season Ahead

Despite the higher rates, the buyers are not Dettered

As more and more buyers enter the market, the spring housing season is heating up. And that's fantastic news for sellers, especially after soaring mortgage rates kept so many potential buyers away last year. Realtor.com, 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 than a year ago.”

Due to information from mortgage purchase applications, we know 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.”

As a result, the quantity of mortgage applications demonstrates the number of prospective buyers. In other words, a rise in mortgage applications indicates increased consumer demand. According to Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), 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.”

We can observe how mortgage rates directly impact applications over time. Applications decreased as a result of rates last year's sharp increase.

Because more buyers are actively shopping for properties, the recent increase in mortgage applications and the decrease in mortgage rates are good news for sellers.

Buyers are expected this spring, usually the biggest season for real estate. And according to Realtor.com,

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

For spring, the housing market is heating up. Let's connect if you're considering selling your home to capitalize on the current increase in buyer activity.