The housing market is buzzing again — you can really feel it. Mortgage rates have dropped nearly a full percentage point this year, and that’s getting more buyers back in the game.

Mortgage applications are on the rise and market activity is picking up. Sellers who list early can take advantage of that momentum well before their competition does.

Here’s what’s going on behind the scenes and how you can make the most of it.

When Rates Come Down, Buyer Activity Goes Up

In today’s market, buyer interest really follows mortgage rates. When rates drop, more people apply for home loans. Rick Sharga, founder and CEO of the CJ Patrick Company, puts 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% range, we’ve seen an influx of buyers hit the market.”
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— Rick Sharga, Founder and CEO of the CJ Patrick Company

That’s exactly what the numbers are showing — many people who had stepped back are starting to apply for mortgages again now that borrowing costs have eased. That activity will rise and fall as rates do, but overall things have gotten better since rates began to come down.

Actually, the Mortgage Bankers Association reports that the Mortgage Purchase Index is sitting at its highest point so far this year.

And that's not all — the MBA reports mortgage applications just reached their highest level in nearly three years, another clear sign that demand is trending upward as we head into 2026.

And just so you know, it wasn’t only the government shutdown causing a temporary slowdown in processing government loans. If you check the previous chart, you can see momentum steadily building all year long.

The main point: with rates falling, buyers are coming back — and that’s leading to real offers on homes like yours.

Home Sales Are Rebounding

To underscore the positive momentum, the latest National Association of Realtors report shows pending home sales — properties currently under contract — are on the rise. The Pending Home Sales Index is at its highest level this year.

The market is closing out the year strong and heading into 2026 with fresh momentum. It might not look like a dramatic turnaround, but it’s a meaningful rebound worth noting.

Pending home sales give an early look at where actual closings are headed. When more homes go under contract, it usually means more will close in the next couple of months, which can push overall sales up. That’s likely one reason experts expect home sales to tick up in 2026 compared with 2025 and 2024.

Sure — we might see some ups and downs toward year-end as mortgage rates bounce around, but it’s unlikely to derail the bigger picture. Experts expect rates to hold steady through 2026, so the current momentum should carry into the new year.

What This Means for You

Here’s the opportunity: Selling now means—

• More buyer interest. As homes become more affordable, more buyers start jumping back in—which can mean more showings if your home is priced and staged well. And here’s the good news: many of these buyers feel like they’ve waited long enough, so they’re motivated and ready to act.
• Getting ahead of the crowd. Listing sooner rather than later helps you stay one step ahead, before other sellers catch on that the market is shifting.