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 than a year ago.”
Because of mortgage purchase application statistics, we know that buyer activity is increasing. Investopedia reports:
“A mortgage application is a document submitted to a lender when you apply for a mortgage to purchase real estate.”
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), notes, 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.
The Implications for You
This spring, which is normally the biggest season for real estate, buyers are expected. And according to Realtor.com, if you’re a seller, you must get ready:
“If homeowners are planning to sell in 2023, now is the time to get ready.”
This entails working with a neighborhood real estate agent to increase the appeal of your house and have it listed at the right price for your neighborhood.
To sum up
For spring, the housing market is heating up. Work with a local real estate agent if you’re thinking about selling your home and want to take advantage of the current increase in buyer activity.