Is Buyer Demand Finally Coming Back? What Sellers Need to Know

The housing market is showing signs of life we haven’t seen in a while—and the data backs it up. Mortgage rates have dropped nearly a full percentage point this year, and that shift is encouraging buyers to re-enter the market.

Home loan applications are rising, activity is picking up, and sellers who act now could benefit from this momentum before competition heats up. Here’s a closer look at what’s happening—and how you can take advantage.

When Rates Drop, Buyers Step In

Buyer demand today is closely tied to mortgage rates. As rates fall, more people apply for home loans. Rick Sharga, Founder and CEO of the CJ Patrick Company, explains:

"We’re in an incredibly rate-sensitive environment today, and every time mortgage rates drop into the low-to-mid 6% range, we see an influx of buyers hit the market."

The numbers confirm this trend. Buyers who had been on the sidelines are returning, and overall mortgage applications are on the rise. According to the Mortgage Bankers Association (MBA), the Mortgage Purchase Index is now at its highest point so far this year, with applications hitting a nearly three-year high.

This isn’t just a short-term blip—the momentum has been building steadily throughout the year. The key takeaway? Lower rates are pulling buyers back into the market, translating into real offers on homes just like yours.

Home Sales Are Rebounding

Pending home sales—a leading indicator of future closings—are climbing as well. The National Association of Realtors (NAR) reports that the Pending Home Sales Index is at its highest level all year.

What does that mean for sellers? More homes going under contract today suggests more homes will close in the coming months, boosting overall sales. Experts even predict home sales could rise slightly in 2026 compared to 2025.

Even if we see some year-end fluctuations in mortgage rates, forecasts suggest rates will stay relatively steady throughout 2026. That sets the stage for continued momentum in the housing market heading into the new year.

Selling now offers two big advantages:

1. More buyer demand. With improved affordability, expect more buyer traffic and showings—especially if your home is priced and staged correctly. Buyers returning to the market have been waiting a long time, which makes them motivated and ready to act.

2. Getting ahead of the competition. Listing your home sooner rather than later puts you in a strong position before other sellers notice the market shift.

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If you’ve been holding off on selling because you thought buyers weren’t buying, or you paused your listing due to slow interest, now is the time to act.

Curious how buyer activity is shaping up in your area and what it means for selling your home in 2026? Talk to a local agent about listing early next year so you can capitalize on the market momentum.