Lower Mortgage Rates Are Bringing Buyers Back to the Market.
After several quiet weeks, mortgage activity is starting to pick up again — and lower interest rates are a big reason why.
According to the Mortgage Bankers Association, mortgage demand recently rose by 2.8%, marking the first increase in weeks. While that may sound small, it signals that some buyers and homeowners are regaining confidence as borrowing costs ease.
What’s Happening with Rates?
As of last week:
The average 30-year fixed mortgage dropped to around 6.09%
The 15-year fixed mortgage fell to about 5.44%
Even modest rate declines can make a meaningful difference in monthly payments. For some buyers and homeowners, that’s enough to re-enter the market.
Refinancing Is Making a Comeback
One of the biggest shifts has been in refinancing. Refinance applications rose 7% from the previous week and were up more than 100% compared to the same time last year.
This suggests many homeowners are watching rates closely and taking advantage of improvements when they can.
What About Buyers?
While purchase applications dipped slightly week-to-week, buyer demand remains stronger than it was a year ago. In fact, buyer activity is still up about 8% compared to last year.
Some of the recent fluctuations were likely influenced by winter weather that slowed activity earlier in the year. As we head into spring, many experts expect the market to gain momentum.
What This Means for Buyers and Sellers
Industry economists are predicting a more active spring market as:
Mortgage rates gradually ease
Home price growth slows
Inventory increases
Negotiation opportunities improve
In many areas, the market is becoming more balanced, meaning neither buyers nor sellers have a strong upper hand. That can create healthier, more realistic transactions on both sides.
Our Local Perspective
Here in our market, we’re seeing similar patterns. Buyers are becoming more engaged when rates dip, and sellers who price strategically are still finding success.
If you’ve been waiting on the sidelines, this spring could offer opportunities — whether you’re buying, selling, or considering a refinance.
If you’re curious how these trends impact your specific plans or timeline, we’re always happy to share insights and talk through your options.
