The Housing Market Is Gaining Energy — and Sellers Should Pay Attention
The housing market hasn’t felt this energized in a long time, and the numbers backing that up are hard to ignore. Mortgage rates have eased nearly a full percentage point this year, and that shift is beginning to wake buyers back up.
Home loan applications are rising. Activity is picking up. And sellers who act early may benefit from this momentum well before competition increases.
Let’s take a closer look at what’s happening behind the scenes — and how you can take advantage of it.
When Rates Come Down, Buyer Activity Goes Up
In today’s market, buyer demand is closely tied to mortgage rates. As rates come down, more buyers feel confident enough to re-enter the market — and mortgage application data reflects that.
Rick Sharga, Founder and CEO of the CJ Patrick Company, explains it this way:
“We’re in an incredibly rate-sensitive environment today, and every time we’ve seen mortgage rates drop into the low-to-mid 6% range, we’ve seen an influx of buyers hit the market.”
That’s exactly what we’re seeing now. Buyers who were previously sidelined by higher borrowing costs are applying for mortgages again as affordability improves.
While rates will naturally ebb and flow, the bigger picture shows steady improvement since rates began easing earlier this year.
According to the Mortgage Bankers Association (MBA), the Mortgage Purchase Index is hovering at its highest level so far this year. Even more encouraging, mortgage applications recently reached their highest point in nearly three years — a clear sign buyer demand is trending in the right direction heading into 2026.
And this isn’t just pent-up demand from short-term disruptions. The data shows a consistent buildup of momentum throughout the year.
The takeaway is simple: as rates have come down, buyers are easing back into the market — and that’s translating into real contracts on homes.
Home Sales Are Rebounding
Buyer interest isn’t just theoretical. It’s showing up in actual market activity.
The latest report from the National Association of Realtors (NAR) shows pending home sales — homes currently under contract — are also at their highest level of the year. That matters because pending sales are a leading indicator of future closings.
When more homes go under contract, it typically means more homes will close in the following one to two months, helping push overall sales higher.
This rebound helps explain why experts project home sales will inch higher in 2026 compared to both 2024 and 2025.
While we may see some short-term volatility in mortgage rates toward the end of the year, forecasts suggest rates should remain relatively stable throughout 2026. That stability helps set the stage for continued momentum in the housing market.
What This Means for You as a Seller
This shift creates a real opportunity for homeowners considering a move.
Selling sooner rather than later could mean:
More buyer demand: As affordability improves, you may see more buyer traffic and showings — especially if your home is priced and staged correctly.
Motivated buyers: Many buyers feel they’ve already waited long enough and are ready to act when the right home comes along.
Less competition: Listing early puts you ahead of other sellers who haven’t yet realized the market is shifting.
If you’ve been putting off selling because it felt like buyers weren’t buying — or if you previously took your home off the market due to low activity — this may be the signal you’ve been waiting for.
Bottom Line
The housing market is heading into 2026 with renewed energy. Buyer activity is rising, more homes are going under contract, and sellers who act early may be in the strongest position.
If you want to understand what buyer demand looks like in your local market — and what it could mean for selling your home in the new year — now is the time to have that conversation.
Talk with a trusted real estate professional about listing your home in early 2026 so you can take advantage of the momentum already building in the market.
