SHERMAN, Texas (KTEN) —The housing market was red hot in 2022. Now real estate is sales are normalizing, according to Michelle Castle with Guild Mortgage.

"We typically don't have the big swings like other parts of the country," she said. 

Nearly three weeks into the new year, mortgage applications are trending higher.

"Mortgage application levels in the last two weeks are back to the levels it was back in September before it dropped," Castle said. "That is a 28 percent increase from where we were."

Castle attributes the upward trend to two things:

  • it's the beginning of the year and some people want to achieve a goal of owning a home
  • home buyers and sellers have now adjusted to higher mortgage rates

"Rates aren't 2 percent; they are a normal rate now, which are in the sixes, and it's okay," Castle said.

She believes the current real estate market is both buyer- and seller-friendly.