Spring Surge: Why Homebuyers Are Still Making Moves Even with High Rates

Spring is officially here, and with it comes fresh starts, longer days, and open house signs blooming like tulips across neighborhoods. With mortgage rates holding around 6.88%, you might have expected the housing market to stay quiet.

But it hasn’t. According to HousingWire, lenders are reporting a noticeable rise in purchase applications and rate-lock activity. Translation? People aren’t sitting on the sidelines—they’re finding smart, creative ways to buy now.

Let’s break down why buyers are still making moves and what that could mean for your homebuying journey.

Why Demand Is Rising, Even Without Lower Rates

Sure, today’s rates feel high compared to recent years. But the market hasn’t cooled—it’s just evolved. Move-up buyers are leading the charge, using the equity they’ve built to upgrade or relocate to homes that better fit their lifestyle. With home values holding strong, that equity becomes real leverage.

Others are exploring loan options that help keep monthly costs in check, like:

• FHA loans with low down payments and flexible credit requirements
• Adjustable-rate mortgages (ARMs) that offer lower initial payments (ideal if you plan to refinance or move in a few years)

According to Optimal Blue, purchase loan locks rose 7.5% in April—proof that even in a higher-rate market, buyers are still moving forward.

What Could Shift Mortgage Rates This Year

If you’re wondering when (or if) mortgage rates will drop, you’re not alone. While the Federal Reserve is holding the federal funds rate steady for now, here are two wildcards to watch:

1. Tariff Adjustments
A potential trade agreement between the U.S. and China could ease tariffs on building materials. That might lower the cost to build a home by as much as $22,000—making new construction more accessible and easing pressure on tight inventory.

2. Inflation Trends
Inflation dropped to 2.3% in April—its lowest level since early 2021. But it's still above the Fed’s 2% target. If inflation rises again, rate cuts may be delayed or even reversed, keeping mortgage rates elevated.

Bottom line: Rates may stay bumpy. Focus on what you can control—your timing, your budget, and your support team.

Affordability Isn’t Just About Interest Rates

When budgeting for a new home, it’s easy to focus solely on the mortgage rate. But today’s buyers are learning that affordability goes deeper than principal and interest.

Here’s what’s catching some buyers off guard:

• Property Taxes: The average bill climbed to $4,172 last year—a 2.7% increase.
• Homeowners Insurance: Roughly 67% of homeowners saw their premiums rise in 2024.

That’s why more buyers are working with lenders early to understand the true monthly costs—including taxes, insurance, HOA fees, and other expenses. The earlier you get the full picture, the smarter your decisions can be.

What This Means for You as a Buyer

Yes, the market has its challenges. But flexible, well-prepared buyers are still winning. You may be in a strong position if:

• You have equity to use as a move-up buyer
• You’re open to options like FHA, VA, or ARM loans
• You’re budgeting for all monthly costs—not just the mortgage
• You’re working with a lender who helps you adapt to changing conditions

At The CL Team, we’re helping buyers win contracts, navigate today’s challenges, and take confident steps toward homeownership—even when the market isn’t perfect.

Final Take: Don’t Wait for “Perfect.” Plan for What’s Possible.

Waiting for the perfect time to buy? It may be time to rethink what perfect really means. For many, it’s not about the lowest rate—it’s about the right plan, the right support, and the right home for your needs.

Thinking about buying this spring? Let’s talk. The CL Team is here to help you explore your options, run the numbers, and make confident moves in today’s market. Your next chapter starts here—let’s make it a smart one.