Realtor.com has released the latest update on the spring housing market, which shows an increase in buyer activity. This is good news for sellers who were affected by rising mortgage rates last year, which resulted in fewer buyers in the market.
“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.”
Investopedia explains that an increase in mortgage purchase application data is an indicator of trending buyer activity. A mortgage application is a document submitted to a lender to apply for a mortgage to purchase real estate, and an increase in applications directly indicates an increase in buyer demand. Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains that application activity started increasing as mortgage rates fell steadily in March, and this is a welcome development as it aligns with other data showing an uptick in home sales. Mortgage rates have a direct impact on applications over time, as seen in the graph below, where a significant rise in rates resulted in a decline in applications last year.
The recent uptick in mortgage applications, as well as the decline in mortgage rates, is good news for sellers because it means more buyers are actively looking for homes.
What This Means for You
Buyer activity is increasing in the spring season, which is typically the busiest time of the year in real estate. According to Realtor.com, sellers should prepare for this by working with a local real estate agent to ensure their home is maximized for appeal and listed at the ideal price for their area. If homeowners plan to sell in 2023, now is the time to get ready.
The housing market is heating up for spring, and if you’re considering selling your house to take advantage of the recent uptick in buyer activity, it’s time to connect with a real estate agent.
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Tue, 11 Apr 2023 17:12:56 +0000
