Homebuyers are beginning to see modest relief as mortgage rates fall and home price growth slows, setting the stage for a more buyer-friendly market in 2026. The 30-year fixed mortgage rates have dipped from their highs from a year ago and experts say rates could dip below 6% in 2026—though a return to pandemic-era lows is unlikely. While sales activity is picking up and price growth has largely stalled, affordability remains a major challenge, especially for first-time buyers, whose median age has climbed to a record high of 40 years old.
Despite broader economic concerns, buyer activity is already increasing: pending home sales rose 3.3% month over month in November and 2.6% from a year earlier, marking the strongest performance in nearly three years. Realtor confidence is improving, with more than 20% expecting increased buyer traffic in the coming months.
2026 is set up to be a great year of continual home appreciation as buyer activity increases due to inventory growth and as mortgage rates slowly improve.
Source : Housing market improves but affordability still a concern