Homebuyer Activity Shows Signs of Warming Up for Spring

The spring season appears to be warming up in housing as more and more buyers enter the market. And after [rising](https://www.simplifyingthemarket.com/2023/04/03/how-changing-mortgage-rates-can-affect-you/) mortgage rates sidelined so many buyers last year, that’s a good sign for [sellers](https://www.simplifyingthemarket.com/2023/03/13/leverage-your-equity-when-you-sell-your-house/). _Realtor.com_ [has](https://news.move.com/2023-03-30-Realtor-com-R-March-Housing-Report-Spring-Thaw-Lures-Buyers-Back-into-the-Housing-Market) 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](https://www.investopedia.com/terms/m/mortgage-application.asp) 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](https://www.mba.org/news-and-research/newsroom/news/2023/03/29/mortgage-applications-increase-in-latest-mba-weekly-survey), 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_): [](https://files.keepingcurrentmatters.com/content/images/20230407/20230410-mortgage-demand-rises-when-rates-fall-MEM.png) The recent uptick in mortgage applications, as well as the decline in mortgage rates, is good news for [sellers](https://www.simplifyingthemarket.com/2023/03/29/4-key-tips-for-selling-your-house-this-spring/) because it means more buyers are actively looking for homes. #### What This Means for You Buyers are coming this spring, which is typically the busiest time of the year in real estate. And as _Realtor.com_ [tells](https://news.move.com/2023-03-30-Realtor-com-R-March-Housing-Report-Spring-Thaw-Lures-Buyers-Back-into-the-Housing-Market) us, if you’re a [seller](https://www.simplifyingthemarket.com/2023/03/24/have-you-thought-about-why-you-might-want-to-sell-your-house-infographic/), you need to prepare: ###### _“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. ### Bottom Line The housing market is [warming](https://www.simplifyingthemarket.com/2023/03/16/what-buyer-activity-tells-us-about-the-housing-market/) up for spring. If you’re thinking about [selling](https://www.simplifyingthemarket.com/2023/04/04/two-reasons-you-should-sell-your-house/) your house and taking advantage of this recent uptick in buyer activity, let’s connect. * * *