The housing market is starting to feel more energized than it has in quite some time and the numbers are backing that up. Mortgage rates have eased nearly a full percentage point this year, and that shift is bringing buyers back into the market.

Home loan applications are rising. Buyer activity is increasing. And sellers who position their homes early may benefit from this renewed momentum before more competition enters the picture.

Here’s what’s happening behind the scenes and what it could mean if you are thinking about selling your home.

When Mortgage Rates Ease, Buyer Activity Responds

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.

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 percent range, we’ve seen an influx of buyers hit the market.”

That is exactly what we are seeing now. Buyers who were previously sidelined due to affordability concerns are starting to apply for mortgages again as borrowing costs improve.

The Mortgage Bankers Association reports that the Mortgage Purchase Index is currently at its highest level of the year. Mortgage applications have also reached their strongest point in nearly three years. That is a meaningful sign that buyer demand is trending in the right direction as we head toward 2026.

This increase is not just a short term reaction or pent up demand. The data shows a steady buildup of momentum throughout the year.

The key takeaway for sellers is simple. As rates have come down, buyers are easing back into the market and that interest is turning into real contracts on homes just like yours.

Pending Home Sales Are Trending Up

Another strong indicator of improving demand comes from the National Association of Realtors. Pending home sales which reflect homes currently under contract are also at their highest level this year.

This matters because pending sales are a leading indicator of future closings. When more homes go under contract, it usually means more homes will sell in the months ahead.

As a result, many experts expect overall home sales in 2026 to be slightly higher than in 2025 and 2024. While mortgage rates may fluctuate a bit, forecasts suggest they should remain relatively stable throughout the coming year. That stability helps support continued buyer confidence.

What This Means for You as a Seller

This shift in the market creates a real opportunity for homeowners who are considering selling.

Selling sooner rather than later may offer several advantages:

• More buyer demand. As affordability improves, you may see more showings and stronger interest when your home is priced and presented correctly. Many buyers feel they have waited long enough and are motivated to act.

• Getting ahead of the competition. Listing before more sellers recognize the shift can help your home stand out and capture attention early.

If you previously delayed selling because buyer activity felt slow or if you took your home off the market due to limited interest this could be the sign you were waiting for.

Bottom Line

Buyer demand is showing real signs of life again and the momentum is building heading into 2026.

If you want to understand what this means for your specific neighborhood and how to position your home for success, let’s talk. Listing early in the new year could help you take advantage of improving conditions and motivated buyers.

Reach out to Don Reid Properties to start the conversation and see what this market shift could mean for you.