Homebuyer Activity Shows Signs of Warming Up for Spring

<article class="post-667028 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-667028"><span class="entry-date">April 10, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">Homebuyer Activity Shows Signs of Warming Up for Spring</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=Homebuyer+Activity+Shows+Signs+of+Warming+Up+for+Spring&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fhomebuyer-activity-shows-signs-of-warming-up-for-spring%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
<div class="fb-share-button display-inline-block" data-href="https://gilliggroup.com/blog/homebuyer-activity-shows-signs-of-warming-up-for-spring/" data-layout="" data-size=""><a class="facebook solid fb-xfbml-parse-ignore" data-tracking="Post,Social Post Link Clicked,Twitter" href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fhomebuyer-activity-shows-signs-of-warming-up-for-spring%2F&amp;src=sdkpreparse" target="_blank"><span class="force-hidden">Facebook</span></a></div>
<a class="pinterest solid display-inline-block" count-layout="horizontal" href="https://pinterest.com/pin/create/link/?url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fhomebuyer-activity-shows-signs-of-warming-up-for-spring%2F&amp;description=Homebuyer+Activity+Shows+Signs+of+Warming+Up+for+Spring" target="_blank"><span class="force-hidden">Pinterest</span></a>
<a class="linkedin solid display-inline-block" href="https://www.linkedin.com/shareArticle?mini=true&amp;url=https://gilliggroup.com/blog/homebuyer-activity-shows-signs-of-warming-up-for-spring/?shareSlug%3Dhomebuyer-activity-shows-signs-of-warming-up-for-spring" target="_blank"><span class="force-hidden">LinkedIn</span></a>
<a class="email dashicons dashicons-email solid display-inline-block" href="mailto:?subject=From gilliggroup.com: Homebuyer Activity Shows Signs of Warming Up for Spring&amp;body=Homebuyer Activity Shows Signs of Warming Up for Spring%0D%0Dhttps://gilliggroup.com/blog/homebuyer-activity-shows-signs-of-warming-up-for-spring/" target="_blank"><span class="force-hidden">Email</span></a>
</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="Homebuyer Activity Shows Signs of Warming Up for Spring Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20230410-homebuyer-activity-shows-signsof-warming-up-for-spring-KCM.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>The spring season appears to be warming up in housing as more and more buyers enter the market. And after <a href="https://www.simplifyingthemarket.com/2023/04/03/how-changing-mortgage-rates-can-affect-you/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">rising</a> mortgage rates sidelined so many buyers last year, that’s a good sign for <a href="https://www.simplifyingthemarket.com/2023/03/13/leverage-your-equity-when-you-sell-your-house/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">sellers</a>. <em>Realtor.com</em> <a href="https://news.move.com/2023-03-30-Realtor-com-R-March-Housing-Report-Spring-Thaw-Lures-Buyers-Back-into-the-Housing-Market" rel="noopener noreferrer" target="_blank">has</a> the latest:</p>
<blockquote><p><em>“Spring is officially here, and like green shoots emerging from the bleak winter, </em><strong><em>new data suggests that more buyers are back in the market</em></strong><em>, although more subdued compared to a year ago.”</em></p></blockquote>
<p>We know buyer activity is trending up because of mortgage purchase application data. <a href="https://www.investopedia.com/terms/m/mortgage-application.asp" rel="noopener noreferrer" target="_blank">According</a> to <em>Investopedia</em>:</p>
<blockquote><p><em>“A mortgage application is a document submitted to a lender when you apply for a mortgage to purchase real estate.” </em></p></blockquote>
<p>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 <em>Mortgage Bankers Association</em> (MBA), <a href="https://www.mba.org/news-and-research/newsroom/news/2023/03/29/mortgage-applications-increase-in-latest-mba-weekly-survey" rel="noopener noreferrer" target="_blank">explains</a>, application activity started ramping up as mortgage rates fell steadily in March:</p>
<blockquote><p><em>“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.”</em></p></blockquote>
<p>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 (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/content/images/20230407/20230410-mortgage-demand-rises-when-rates-fall-MEM.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230407/20230410-mortgage-demand-rises-when-rates-fall-MEM.png"/></a> </p>
<p>The recent uptick in mortgage applications, as well as the decline in mortgage rates, is good news for <a href="https://www.simplifyingthemarket.com/2023/03/29/4-key-tips-for-selling-your-house-this-spring/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">sellers</a> because it means more buyers are actively looking for homes.</p>
<h4><strong>What This Means for You</strong></h4>
<p>Buyers are coming this spring, which is typically the busiest time of the year in real estate. And as <em>Realtor.com</em> <a href="https://news.move.com/2023-03-30-Realtor-com-R-March-Housing-Report-Spring-Thaw-Lures-Buyers-Back-into-the-Housing-Market" rel="noopener noreferrer" target="_blank">tells</a> us, if you’re a <a href="https://www.simplifyingthemarket.com/2023/03/24/have-you-thought-about-why-you-might-want-to-sell-your-house-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">seller</a>, you need to prepare:</p>
<blockquote><p><em>“If homeowners are planning to sell in 2023, now is the time to get ready.”</em></p></blockquote>
<p>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.</p>
</div>
</div></article>