03/31/2026
Are you in the market to buy a home?
The U.S. housing market is expected to be more stable in 2026, though activity will remain relatively slow. Mortgage rates are forecast to average about 6.3%, while home prices are projected to rise modestly by roughly 2.2%. Existing-home sales are expected to tick up 1.7%, supported by a nearly 9% increase in inventory that should help create more balanced market conditions.
Buyers may gain slightly more negotiating power as affordability improves, with incomes projected to outpace inflation. First-time buyers in particular could benefit from better selection and marginally improved affordability, though competition will remain. Renters, especially in the South and West, may also see some relief as rents trend lower.
