The housing market is showing signs of heating up as we move into spring, with an increasing number of buyers entering the market. This is particularly welcome news for sellers, following a year where rising mortgage rates caused many buyers to hold back. Realtor.com reports that recent data indicates a resurgence of buyer interest, albeit at a more subdued level than in previous years.
One way to track buyer activity is through mortgage purchase application data, as explained by Investopedia. Essentially, the number of mortgage applications indicates how many buyers are looking to purchase real estate, with an increase in applications reflecting growing buyer demand. In March, application activity picked up as mortgage rates started to decline, a trend which Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), suggests has continued in recent weeks. This, combined with other data showing an uptick in home sales, is an encouraging development for the real estate market.
Last year, as the graph below shows, mortgage rates rose dramatically, leading to a fall in applications. However, the recent drop in mortgage rates has led to a rise in buyer activity, which is excellent news for sellers. With spring being the busiest season in real estate, the surge in buyer interest is expected to continue. Realtor.com advises sellers to take advantage of this trend by working with a local real estate agent to ensure their home is priced correctly and positioned to attract maximum interest from potential buyers.
IN SUMMARY
The housing market is warming up for spring. If you’re thinking about selling your house and
