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Spring Market Largely Dependent On Rates
Dated: April 5 2023
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Early spring is traditionally when the housing market picks up, and home buyers start shopping for a house. So far, this year looks no different. According to the National Association of Realtors' consumer website, active listings and time on the market shrank in March, which is a sign that buyers are starting to get busy. But while the spring market shows signs of activity, how it proceeds will largely depend on mortgage rates.
Danielle Hale, the website's chief economist, says buyers pay attention to their fluctuations. "Signs show that buyers are active in the spring housing market, even if they aren't as numerous as they were during the pandemic," Hale said. "Amid fewer new choices on the market and still rising home prices, home shoppers have shown that they are very rate sensitive, only jumping back in the market when rates dip, and so what happens with rates this spring will likely play a strong role in determining whether the housing market bumps along or picks up speed this year."
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