Homebuyer Activity Gains Momentum as Spring Approaches
The spring season appears to be warming up in housing as more and more buyers enter the market. And after rising mortgage rates sidelined so many buyers last year, that’s a good sign 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 in response (see graph below):
The recent increase in mortgage applications and the decline in mortgage rates can indeed be positive news for sellers. When more buyers are actively looking for homes, it can create a favorable environment for sellers as there is increased demand for properties. Lower mortgage rates can make homes more affordable for buyers, potentially motivating them to enter the market. This increased buyer activity can result in a larger pool of potential buyers for sellers, potentially leading to more offers and competitive bidding situations. However, it's important to note that market conditions can vary by location, and the overall state of the economy and other factors can also influence buyer demand. Consulting with a real estate professional who is knowledgeable about your specific market can provide valuable insights into current conditions and how they may impact your selling strategy.
What This Means for You“If homeowners are planning to sell in 2023, now is the time to get ready.”
The 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.
updated pool home is ready now! You get the added...