Homebuyers are returning to the market in droves as mortgage rates and home prices gradually tick down, according to new data released Friday by Redfin.

Mortgage applications increased in each of the past four weeks over a period ending March 26, according to the Redfin’s Homebuyer Demand Index, the brokerage’s in-house measure of buyer demand. Over the past month, the index jumped to its highest level since May 2022, indicating a surge of activity as the spring home buying season kicks off.

First-time buyers are interested in looking at homes because prices have come down, though they’re still concerned about high mortgage rates.

While buyer activity is increasing month over month, home sales still sag below levels seen last spring. Pending home sales were down 21.1 percent year over year in February, but have increased monthly for three-consecutive months, according to data from the National Association of Realtors.

Existing-home sales also shot up in February, increasing by 14.5 percent after falling for 12 straight months. Sales remained 22.5 percent lower than 2022 levels, however.

The Redfin report found unequal distribution of price drops across the country due to extremely low inventory, with prices dropping in some parts of the country and rising in others.

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