Disclosure:
We use AI tools like ChatGPT to help craft and organize our ideas, but the heart and experience behind each article are entirely human. This content is for informational purposes only and should not be taken as legal, tax, financial, or mental health advice.
Mortgage demand is picking up again. For the first time in years, applications are approaching a three year high, and many people are asking why. The answer comes down to three shifts creating a healthier, more balanced environment for buyers.
Rates Have Held Below 6.64% for 18 Weeks
National data shows that when rates stay below roughly 6.64%, demand improves. This year, rates have hovered near 6% for eighteen straight weeks, which delivered eleven positive week over week increases and eighteen weeks of double digit annual growth in purchase applications.
The difference is not just lower rates. It is stability. Buyers finally have enough consistency to make confident decisions.
Better Mortgage Spreads Are Keeping Rates Down
Mortgage spreads improved throughout 2024 and 2025, helping keep rates in the 6% range even while the 10 year Treasury yield struggled to stay under 4%. Without these better spreads, today’s rates would be closer to the mid 7% range.
Inventory Has Grown More Than 15% Year Over Year
Active inventory is up more than 15% nationally, giving buyers more options and slowing price growth. A higher share of homes are seeing price reductions, which signals a healthier, more balanced market than the one we saw a few years ago.
Final Thought
When rates stabilize, spreads improve, and inventory grows, demand naturally follows. This combination has created one of the most approachable environments buyers have seen in years.
At Next Chapter, we help people build, protect, and pass on wealth through real estate, so their next chapter becomes their best one yet.
