The housing market is showing fresh signs of life. Mortgage rates have eased nearly a full percentage point this year, and that shift is beginning to bring buyers back. Home loan applications are up, pending contracts are rising, and sellers who list early may benefit from this renewed momentum before the market gets crowded again.

Below is a breakdown of what’s happening behind the scenes and how sellers can take advantage of the current trends.

Buyer demand in today’s market is highly rate-sensitive. As mortgage rates drop, more people who paused their plans begin to re-enter the market and submit mortgage applications. Industry leaders note a pattern: whenever rates fall into the low-to-mid 6% range, a fresh wave of buyers tends to appear.

That renewed demand shows up in measurable ways. The Mortgage Bankers Association indicates the Mortgage Purchase Index is at its strongest level so far this year, and mortgage applications recently hit their highest point in almost three years. Taken together, those signals suggest the decline in borrowing costs is translating into concrete buyer interest — not just browser traffic, but actual applications that can turn into contracts.

This isn’t a one-off blip tied to temporary processing delays or administrative issues; instead, the data reveal a steady buildup of momentum through the year. For sellers, that means buyer pools are expanding: more potential buyers are qualified and active, and a well-positioned listing can capture that returning demand.

Pending home sales — homes that are already under contract — are rising, which is an important leading indicator for closed sales in the coming months. The National Association of Realtors reports the Pending Home Sales Index is at its best level this year, reinforcing the idea that contract activity is rebounding.

Why does this matter? Pending sales typically predict closings two months out. An uptick in contracts now signals a likely increase in completed sales soon, which can translate into a stronger market overall. While some year-end volatility in mortgage rates is possible, expert forecasts expect rates to remain roughly where they are through 2026, giving this momentum room to continue into the new year.

For sellers, the implication is straightforward: the market may be warming in a sustainable way, and listing ahead of broader recognition of that trend could position a home to benefit from rising activity without facing heavier competition.

This is the practical opportunity: list now to capture more buyer traffic and be ahead of sellers who may wait. As affordability improves and motivated buyers return, a home that’s priced and staged correctly can see increased showings and higher-quality offers. Those buyers often feel they’ve already delayed long enough and are ready to move quickly once they find a property that fits.

Being early also gives sellers tactical advantages. Listing before a broader seller response allows time to gather buyer feedback, make targeted adjustments, and refine pricing strategy before the market potentially becomes more crowded. In short, sellers who work strategically now—preparing the house, setting a competitive price, and marketing effectively—can often secure better outcomes than those who wait for the market headlines to confirm the shift.

If you took your listing off the market because activity was slow, or you postponed selling because you thought buyers weren’t buying, this data suggests it may be time to revisit that decision. A coordinated plan with an experienced agent can help you list with confidence and aim to capture the momentum building ahead of the spring cycle.

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Bottom line

Buyer activity is rebounding as mortgage rates ease, mortgage applications rise, and pending contracts pick up — all signs that the market is finishing the year with renewed energy heading into 2026. If you’re considering selling, listing sooner rather than later can put you ahead of other sellers and in front of motivated buyers.

✨ If you want to explore what this momentum means for your home and the best timing to list, let’s connect and review your options.