Home sales remained near historic lows in 2025, as high housing costs and elevated mortgage rates continued to keep buyers on the sidelines. But housing affordability is expected to improve in 2026—if only slightly.
That could create an opportunity for house hunters who have been looking for the right moment to enter the market. Here are some housing trends to watch if you’re in the market to buy a home in 2026.
Mortgage Rates Will Drop, But Not as Much as You Think
Mortgage rates peaked at more than 7% in early 2025 and then eased in the second half of the year to around 6.2%. That offered some relief from the high borrowing costs that have helped freeze the housing market.
But most experts don’t expect mortgage rates to fall much further. The Mortgage Bankers Association projects rates will remain between 6% and 6.5% in the coming year. Real estate firm Redfin projects an average mortgage rate of 6.3% in 2026, while the National Association of Realtors also saw mortgage rates hanging at “around 6%.”
“As we go into next year, the mortgage rate will be a little bit better,
Should You Buy a House in 2026? Here’s What’s Ahead
