According to the National Association of REALTORS, after a slow start to the spring market, new data suggests homebuyer activity is gaining traction. Mortgage applications for home purchases have risen to their highest level in over a month—even as interest rates remain relatively unchanged.
A Surprising Year-Over-Year Jump
According to the Mortgage Bankers Association, purchase applications increased 20% compared to the same week last year. This unexpected jump reflects growing buyer interest, possibly driven by a gradual rise in available inventory and hopes for lower rates ahead.
Inventory Expands
While national home sales are still near 30-year lows, experts point to encouraging momentum. Housing inventory is now up 20% year over year, offering more options in many markets—even if that hasn’t yet translated into higher sales volumes.
Why Rates Still Hold the Power
Economists note that a drop in mortgage rates, even by a small margin, could further energize the market. If rates dip closer to 6.5%, analysts believe we could see a notable increase in buyer activity this summer.
Outlook for Summer
With rate stability, improving inventory, and moderated home price growth, early signs suggest that demand may be strengthening just in time for the peak homeownership season.
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Source: nar.realtor
