Buyer Activity Is Up Despite Higher Mortgage Rates

<article class="post-682330 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-682330"><span class="entry-date">May 3, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">Buyer Activity Is Up Despite Higher Mortgage Rates</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Buyer+Activity+Is+Up+Despite+Higher+Mortgage+Rates&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fbuyer-activity-is-up-despite-higher-mortgage-rates%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Buyer Activity Is Up Despite Higher Mortgage Rates Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/content-images-20230502-20230503-buyer-activity-is-up-despite-higher-mortgage-rates.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>If you’re a homeowner thinking about <a href="https://www.simplifyingthemarket.com/2023/04/19/falling-out-of-love-with-your-house-it-may-be-time-to-move/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">making a move</a>, you may wonder if it’s still a <a href="https://www.simplifyingthemarket.com/2023/04/25/what-are-the-experts-saying-about-the-spring-housing-market/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">good time</a> to sell your house. Here’s the good news. Even with higher mortgage rates, buyer traffic is actually <a href="https://www.simplifyingthemarket.com/2023/04/11/the-big-advantage-if-you-sell-this-spring/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">picking up speed</a>.</p>
<p>Data from the latest <a href="https://www.showingtime.com/blog/february-2023-showing-index-results-buyer-activity-continues-to-normalize/" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank"><em>ShowingTime Showing Index</em></a>, which is a measure of buyers actively touring homes, helps paint the picture of how much buyer demand has increased in recent months (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/content-images-20230502-20230503-showing-traffic-up-again-in-february.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content-images-20230502-20230503-showing-traffic-up-again-in-february.png"/></a></p>
<p>As the graph shows, the first two months of 2023 saw a noticeable increase in buyer traffic. That’s likely because the limited number of homes for sale kept shoppers looking for homes even during colder months.</p>
<p>To help tell the story of why the latest report is significant, let’s compare foot traffic this February with each February for the last six years (<em>see graph below</em>). <strong>It shows this was one of the best Februarys for buyer activity we’ve seen in recent memory.</strong></p>
<p><a href="https://files.keepingcurrentmatters.com/content-images-20230502-20230503-showing-traffic-is-still-higher-than-pre-pandemic-years.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content-images-20230502-20230503-showing-traffic-is-still-higher-than-pre-pandemic-years.png"/></a></p>
<p>In the last six years, we saw the most February buyer traffic in 2021 and 2022 (<em>shown in green above</em>), but those years were highly unusual for the housing market. So, if we compare February 2023 with the more normal, pre-pandemic years, data shows this year still marks a clear rise in buyer activity.</p>
<p>The uptick in buyer traffic is even more noteworthy considering the increase in mortgage rates this February. The <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank"><em>Freddie Mac</em></a> 30-year fixed mortgage rate rose from 6.09% during the week of February 2^nd to 6.50% in the week of February 23^rd. But <strong>even with higher rates, more buyers were looking for a home</strong>.</p>
<p>Jeff Tucker, Senior Economist at <em>Zillow</em>, <a href="https://www.marketwatch.com/picks/after-seven-straight-months-of-home-price-declines-heres-what-6-economists-and-real-estate-pros-say-to-expect-from-the-housing-market-this-spring-df79d2c3" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">says</a> the increased buyer activity could continue:</p>
<blockquote><p><em>“More buyers will keep coming out of the woodwork. We always see a seasonal uptick in home shoppers in March and April . . .”</em></p></blockquote>
<p>If you’re looking to sell your house, seeing buyers still active in the market this year should be encouraging. It’s a sign buyers are out there and could be looking for a home just like yours. Working with a real estate professional to list your house now will help you get your home in front of eager buyers today.</p>
<h3>SBottom Line</h3>
<p>Rising foot traffic is a bright spot for this year’s housing market and indicates that buyers are looking to purchase this year, even with higher mortgage rates. If you’re ready to sell your house, partner with a real estate professional.</p>
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