The COVID-19 pandemic, rising mortgage rates, and government actions have significantly influenced homebuyers' preferences and housing demand in 2023. Mortgage loan applications have been steadily increasing since 2010, but the Federal Reserve's implementation of a tight monetary policy to combat inflation has led to a sharp decline in mortgage applications over the past year, according to the National Association of Realtors.
California leads in the number of loan applications for home purchasing, followed by Texas and Florida. Despite fluctuating home sales, the count of Realtor members has continued to rise, indicating ongoing demand despite a changing market landscape.
The change in housing demand is more prominent in some states than in others. For example, Nevada saw a significant loss in loan applications (-24.18%) even though its share of NAR membership stayed nearly the same (-2.57%). California also saw a large decline in the number of applications (-21.58%), however, its membership count increased (1.05%). Other Western states like Hawaii, Montana, Washington, and Wyoming showed a similar significant decrease in the number of people applying to purchase a home alongside an increase or no significant change in the number of REALTORS.
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