Real Estate Trends 2025/2026
ECONOMIST PREDICTS 2026 TO BRING AN AVERAGE MORTGAGE RATE OF 6.3%, INCREASED HOME INVENTORY, AND A MORE BALANCED HOUSING MARKET.
The market is ex/pected to stablize in 2026—more balanced, but not booming
Key Forecasts
Mortgage rates: Expected to average 6.3%, offering slight affordability relief.
Home prices: Projected to rise 2.2%, a modest increase.
Existing-home sales: Forecast to grow 1.7% to 4.13 million, a small but meaningful rebound from 2025's nearly 30-year low.
Inventory: For-sale housing supply expected to increase nearly 9% year over year.
What this means for buyers & sellers
A more balanced market with steadier price growth.
Slightly lower rates provide breathing room for buyers.
Negotiating power shifts more toward buyers, rather than sellers dominating.
Affordability improves as incomes outpace inflation, potentially pushing typical payments below 30% of income for the first time since 2022.