After years of high mortgage rates, low inventory, and sluggish sales, the 2026 housing market is moving toward normalization—not a boom or a bust, but a healthier equilibrium many homeowners haven’t experienced in years. Steady rates, cooling price growth, and rising supply are setting the stage for improved affordability and less frantic decision-making.

Mortgage Rates and Home Prices Are Stabilizing

Mortgage rates have settled after their post-pandemic surge. Freddie Mac reported the average 30-year fixed rate dipped to 6.15% by late 2025, the year’s low point, with forecasts holding steady in the low 6% range for 2026.

Home price growth is also moderating. The National Association of Realtors (NAR) projects about 4% national appreciation, while some markets may see more in the 1%-2% range. This slower pace supports equity growth without the volatility that often signals trouble.

Inventory Is Rising—and That’s Good News

Nationwide inventory remains tight due to long-standing shortages, but it’s improving meaningfully. Stabilizing rates are encouraging more listings as homeowners feel less “locked in.” Even gradual gains are reducing competitive pressure and giving both buyers and sellers more breathing room.

Affordability Is Starting to Improve

Wage growth is beginning to outpace home prices in many areas. Paired with steadier mortgage rates, this shift is nudging affordability closer to historical norms—slowly, but steadily. It’s bringing sidelined buyers back into the market without flooding supply or driving prices higher.

Sales Are Picking Up with Renewed Confidence

After muted activity in recent years, transactions are poised to rebound. The NAR forecasts a 14% increase in existing-home sales in 2026 as borrowing costs ease and buyer confidence improves. More activity brings clearer pricing, faster closings, and greater flexibility for everyone involved.

What This Means for You

Real estate in 2026 isn’t about getting caught up in a must-act-now frenzy—it’s about strategy. Whether you’re selling, buying, refinancing, or holding to build equity, the backdrop is steadier, supported by strong employment, low delinquency rates, and no signs of widespread housing distress.

National trends provide context, but local markets tell the real story. Conditions vary widely by region, making local insight essential. If you’d like to talk through how these shifts affect your situation—and whether it makes sense to move or wait—I’m happy to help.