April 14, 2026
11 min read
Is spring the right time to make a housing move?
With a Wells Fargo expert as your guide, explore the pros, cons, and costs of making a home financing move this spring.
Key takeaways
- Spring is the busiest time of the year for the housing market.
- As interest rates vacillate, so does interest from people looking to refinance their mortgages.
- Refinancing is a complex financial transaction, and talking with a mortgage banker can help you understand your options.
- The decision to move forward or not ultimately comes down to personal finances and future plans.
- Be aware of market and interest rate volatility.
The snow and ice are melting, daylight saving time has begun, and temperatures are gradually rising. In the United States, that means spring has arrived. And with it, a flurry of purchase mortgages and some refinancing activity.
According to data from the U.S. Census Bureau and the Department of Housing and Urban Development, home sales typically increase in the spring months, following winter lows, making spring the highest volume season for market activity.
“A lot of it is cyclical and has to do with local school schedules,” said Eric Gotsch, Mortgage Retail Sales senior manager at Wells Fargo. “There are so many listings because people want to close in the late spring/early summer and move in so the family and children can be ready for school to start in the fall.”
Aside from an increase in homes available for sale, Gotsch and Wells Fargo’s Home Lending team are tracking three other key indicators in the market:
- Average age of first-time homebuyers
- Total listings
- Percentage of homes sold above or below listing price, as well as regional trends.
“The median age of first-time homebuyers in the U.S. is 35 years old,” Gotsch said. “This is the first meaningful change in some time, as buyer ages rose steadily for years. We can tie this to small changes in the number of houses available and affordability.”
As of February 2026, there are 915,000 active home listings in the U.S., up 8% year-over-year (YoY), but still 17% below pre-pandemic (2017–2019) norms. And through the early portion of this year, 62% of homes have sold below their original listing price.
“These indicators, in total, show a notable shift in the homebuying landscape,” said Gotsch. “We’re beginning to see conditions favor buyers as they step into the market with more confidence and options than previous years.”
Still, according to Wells Fargo’s 2026 Money Study, about half of Americans are delaying some life plans, like buying a house.
First-time homebuyers
Before you begin house hunting, take time to prepare your financial foundation. Start by pulling your credit reports from all three major bureaus, and then calculate what you can truly afford.
Do the math
Your current interest rate being lower than the current market rate doesn’t mean you shouldn’t refinance. There are advantages from refinancing to consider if your household debt is significantly more than your current mortgage.
Figure out what other debt you have — consumer debt, car loans, student loans, credit cards, home equity lines of credit, etc. — and calculate your monthly household weighted average using online calculators and tools.
“In this situation, refinancing or cashing out at the higher interest rate could still save your household money,” Gotsch said. “If your weighted household average interest rate across all debts is 12%, then a 7% mortgage that puts all your debt into one payment may be a better situation.”
ARMs have a set interest rate for an introductory period and then adjust periodically. The interest rate and annual percentage rate (APR) may increase at the end of the initial fixed-rate period, and rate adjustments are tied to a market index used for the loan.
“If your ARM is about to adjust in rate in the next six to 18 months, this might be a good time to lock into a fixed rate, depending on the specifics of your mortgage,” Gotsch said. “We’ve found that a lot of people don’t want the potential volatility and variability of fluctuating rates. And by taking out a new fixed-rate mortgage, you can refinance now, and potentially at another time in the future should rates go down further.”
Once you understand your budget, explore mortgage options available to you as a first-time buyer. Federal Housing Administration (FHA) loans require only 3.5% down, while VA loans offer zero down payment for eligible veterans and service members.
Shop around by requesting estimates from multiple lenders. Don’t just compare interest rates though. Also compare closing costs and loan terms. Get preapproved for a mortgage before you start looking for homes, as this shows sellers you’re a serious buyer and helps you understand exactly how much house you can afford.
Wells Fargo offers the fixed-rate Dream. Plan. Home.® mortgage loan, with a closing cost credit of up to $5,000 eligible buyers can apply toward one-time closing costs when buying a primary home in an eligible area.
“Date the mortgage, marry the house,” Gotsch said. “You can refinance while you are in your home, so focus on negotiating the best price because interest rates are likely temporary.”
Refinancing is back on the radar for some homeowners
According to the Mortgage Bankers Association (MBA), applications to refinance a home loan were up 33% from the same week one year ago for the week ending March. 27, 2026.
Figuring out if or when to refinance your mortgage is complex. But in the end, it comes down to your personal situation and is influenced by several factors, including:
- The current interest rate on your mortgage
- The current mortgage rates in the market
- Your future plans for the home
Gotsch believes talking to a mortgage banker is a crucial step in the process.
“You’ll get one-on-one advice tailored to your unique financial situation,” he said. “Online calculators can calculate mortgage payments for you, but a mortgage banker can walk you through the actual numbers, including estimated closing costs, and explain your loan term options in detail. They’ll help you see exactly what refinancing could mean for you, making it easier to decide if it’s the right move.”
What is refinancing?
Refinancing is when a mortgage holder pays off an existing loan with a new loan. The process for refinancing is similar to obtaining a mortgage since you may encounter many of the same procedures and types of costs the second time around.
By refinancing, you may be able to:
- Lower your interest rate
- Adjust the length of your mortgage
- Move from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage
- Get an ARM with better terms
- Cash out some of the equity built up in your home
When is the right time to refinance?
“The No. 1 question is probably, ‘Should I wait until rates go lower?’” said Gotsch. “The correct answer is that if you can benefit from a refinance today, you should do it. Refinancing again could be an option if the rate goes even lower in the future because, just like the stock market, it’s almost impossible to pick the absolute bottom.”
Why refinancing might make sense right now
“Mortgage rates continue to fluctuate after briefly dipping below 6% earlier this year,” Gotsch said. “While that number may feel high compared to historic lows, rates are lower than they were last year and have become more stable. Many buyers are shifting their mindset away from waiting for the ‘perfect’ rate and instead focusing on what monthly payment feels comfortable within their budget. Stability matters, and today’s environment allows buyers to plan more confidently.”
If you’re currently in a fixed-rate loan and are considering refinancing to a lower-rate, fixed-rate loan, a common rule of thumb is to consider refinancing when rates are 1-2% below your current mortgage rate, but it really depends on your situation.
“Because refinancing comes with closing costs, you need to figure out your break-even point,” Gotsch continued. “Your mortgage banker can help you do this, but basically, the break-even point is the time it takes your monthly savings to cover the closing costs. If you plan to sell your home before that break-even point occurs, it may not be worth the cost of refinancing.”
Key factors to consider before refinancing
The 10-year Treasury rate (or yield) is the interest rate on U.S. Treasury securities with a constant maturity of 10 years. It represents the return investors earn for holding a U.S. government bond for 10 years and serves as a benchmark for other interest rates.
“There’s always a lot of hype around when the Federal Reserve makes moves on interest rates. That’s when media chatter is at its loudest,” said Gotsch. “That’s great, but those are short-term interest rates. We’ve found that mortgages track more closely to the 10-year Treasury yield.”
The interest rate on your mortgage is tied directly to how much you pay on your mortgage each month, and lower rates usually mean lower payments.
A recent study by Apollo, using data from the Federal Housing Finance Agency, shows that 20% of all mortgages in the United States have an interest rate above 6%.
7 refinancing mistakes to avoid
Miscalculating the total cost of a refinance
- Refinancing includes closing costs and fees for things like title insurance and appraisal. Compare overall savings versus expenses before committing and be sure to factor them into your decision.
Ignoring prepayment penalties
- Check your current mortgage for penalties that could offset refinancing benefits.
Overlooking loan term changes
- Lower monthly payments often mean a longer term, which increases total interest paid.
Failing to review your credit score
- Poor credit can lead to higher rates and fewer options.
Delaying documentation preparation
- Gather mortgage statements, tax returns, and bank records early to avoid delays.
Falling for scams
- Avoid “foreclosure rescue” or “loan modification” scams. Verify lenders and never sign over property rights. The federal government does not provide grants for refinancing, so beware of fraudulent claims.
Ignoring appraisal inaccuracy
- An incorrect appraisal can affect your loan terms. Request a review if you suspect any errors.
For more information, visit Wells Fargo’s mortgage learning and education center.
FAQs
“Paying points should be figured into this,” Gotsch said. “It’s only worth it if you plan to stay in your home long enough to pass the break-even point where the interest savings from the lower rate outweigh the upfront costs.”
“Shortening your term could be a good option to save a lot of money over time if you can comfortably afford it,” said Gotsch. “A shorter term means you pay less interest overall and pay off your home faster, but it increases your monthly payment. When it comes to switching from a fixed-rate mortgage to an ARM, it’s probably not the most appealing option at the moment. Right now, ARMs are only slightly lower than fixed-rate mortgages, so there isn’t much of a benefit to making that move.”
“Applying for a mortgage can affect your credit,” Gotsch said, “but the impact is usually minor and temporary.”
A hard inquiry, which happens when a lender performs a thorough review of your credit for a mortgage preapproval or application, can slightly lower your score. However, multiple inquiries for the same type of loan within a short window (about 14 to 45 days) are generally treated as a single event, minimizing the impact.
To reduce the impact, you can get prequalified instead of preapproved, as this process may use a soft inquiry, which does not affect your score. Talk to your lender to understand the impact of your options.
“Mortgage preapproval is important because it strengthens the buyer’s position in the market,” said Gotsch. “Sellers are more likely to consider offers from buyers who have already completed this step, particularly in situations where multiple parties are interested in the property. Preapproval can also expedite the buying process by minimizing the risk of last-minute financing issues.”
This readiness can provide the buyer with greater negotiating power and help their offer stand out, even if it is not the highest price on the table.
“The 2026 housing market is shaping up to be more buyer-friendly than it has been in years,” said Gotsch. “With more homes available, fewer bidding wars in certain regions, and steadier mortgage rates, buyers have the opportunity to move forward with a little more confidence rather than urgency.
Preparation is crucial for homebuyers. By understanding their budget, securing mortgage preapproval, and collaborating with trusted professionals, buyers can take advantage of current market conditions and make decisions that feel right for their needs, both now and in the future.”
Equal Housing Lender
