The spring housing market is waking up, and if you’ve been waiting for the right moment to make your move, it’s time to pay attention.

Yes, mortgage rates are still hovering above 6.5%. But here’s the kicker: mortgage purchase applications are rising. And that’s a sign that the real estate market might just be shaking off its winter slumber.

Let’s break down what this means and why it could matter a whole lot for buyers and sellers in 2025.

What Are Mortgage Purchase Applications Anyway?

Simply put, mortgage purchase applications are exactly what they sound like: people applying for loans to buy homes.

And here’s why that matters: These applications are a leading indicator. They’re like peeking into the future of the housing market—giving us a sneak preview 30 to 90 days before actual home sales are finalized.

So when applications go up? It’s a pretty good sign that buyer activity is ramping up. And right now, the data looks promising.

The Numbers Don’t Lie: What We’re Seeing in 2025

So far, the first 10 weeks of 2025 have shown:

•4 positive weeks (more applications than the previous week)

•3 flat weeks (about the same as before)

•3 negative weeks (a slight dip compared to the prior week)

The takeaway? The trend is mostly positive. And for the first time in a long while, we’re seeing year-over-year growth in purchase applications. That’s huge!

Why This Spring Feels Different

Here’s where things get interesting: Applications are rising even though mortgage rates haven’t really dropped.

As of mid-March 2025, the average 30-year fixed rate is around 6.7%—not ideal, but compared to the 8%+ rates we were seeing in late 2023? It’s a lot more manageable.

According to Logan Mohtashami from the HousingWire Daily Podcast:

“Unlike the last few years when rates have gone up and purchase application data is negative, it’s still positive on the weeklies and the year over year. It was a long time ago since I’ve been able to say that.”

Buyers aren’t waiting for the perfect rate. They’re jumping in when they see a window of opportunity. And with mortgage rates creeping down from those 8% highs? That window is starting to crack open.

The Early Peaks of 2023 and 2024

Just for some context, the market has been doing some wild stuff the past couple of years:

•2023: Mortgage rates hit over 8% in late 2023 but dipped to around 6.63% in January 2024. Buyers took advantage of the dip, but activity slowed once rates climbed again.

•2024: The pattern repeated. Sales surged early, then dipped when rates went back up.

In both years, the peak of home sales happened early because buyers pounced on temporary drops. But the moment those rates ticked up again, buyer enthusiasm waned.

So, What’s Different About 2025?

This year, we’re seeing buyer activity increase without a significant drop in rates. That’s a huge deal. It’s showing us that demand isn’t only driven by rate changes—buyers are ready to make moves even when rates aren’t at rock-bottom levels.

Now, if rates actually do dip closer to 6% and stay there? Watch out. Experts believe that demand could pick up even more. And in a market with limited inventory, that could mean higher prices and fierce competition.

What This Means For You

Whether you’re a buyer or a seller, here’s what you need to keep in mind:

•For Buyers: If you’ve been waiting for the “perfect” rate, remember that perfect rarely exists. Demand is building. And while rates may fluctuate, waiting too long could mean higher prices or more competition.

•For Sellers: Buyers are re-entering the market even without major drops in rates. That’s a green flag if you’re considering listing your home this spring. Getting ahead of the market could put you in a prime position to attract serious buyers.

Curious how this all shakes out in the Fargo-Moorhead area? Click [here] to read my latest market breakdown.

Final Thoughts

Mortgage purchase applications are rising, and that’s a signal you don’t want to ignore. The housing market may not be experiencing a full-blown frenzy, but there’s life out there—and it’s growing.

Want to talk about your options? Let’s chat! Whether you’re thinking of buying, selling, or just want a clearer picture of what’s happening in your market, I’m here to help.