As more and more buyers enter the market, the spring housing season seems to be heating up. And that's fantastic news for sellers, especially after soaring mortgage rates kept so many potential buyers away last year. Now available on Realtor.com:
“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.”
Due to information from mortgage purchase applications, we are aware that buyer activity is increasing. In line with 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 a rise in 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.”
In actuality, we can observe how applications are directly impacted by mortgage rates over time. Applications decreased as a result of rates last year's sharp increase (see graph below):
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.
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.”
The entails working with a neighborhood real estate agent to increase the appeal of your house and get it listed at the right price for your neighborhood.
To sum up
For spring, the housing market is heating up. If you’re thinking about selling your house and taking advantage of this recent uptick in buyer activity, let’s connect.