If you’ve been watching the housing market, affordability has likely felt like the biggest barrier to moving for years. The good news is that several trends are aligning to make buying more feasible in 2026: mortgage rates have eased, inventory has grown, and price growth is cooling to a more sustainable pace. Below is a clear look at how each of those forces is shaping the market — and what they mean for buyers and sellers.

Mortgage rates have come down significantly from their recent peaks — roughly a full percentage point over the last year in some measures — and that decline matters. Lower rates directly reduce monthly payments and increase buyers’ purchasing power, turning homes that once felt out of reach into realistic options.

Forecasts suggest rates will largely hold in the low-6% range through 2026. Where they go from here depends on broader economic shifts — the job market, inflation trends and any Federal Reserve moves — but the important point is that rates are already meaningfully lower than a year ago. For buyers, that means improved affordability right now; for sellers, it signals that the “new normal” may be rates in the 6s, and those conditions make moving more doable, especially for homeowners with built-up equity.

Inventory improved in 2025 — roughly +15% — giving buyers the options and negotiating room they’d been missing. Those added choices not only make house-hunting less frantic but also help moderate price pressures. Realtor.com projects that inventory will grow further in 2026 (about +8.9%), which should sustain that more balanced dynamic.

With more supply and less frenzied bidding, price growth is slowing. Most experts expect national home prices to continue rising in 2026, but at a much slower pace — about +1.6% on average. That’s an important shift: buyers can expect fewer wild price swings and more predictability when budgeting, while sellers will see steadier, more sustainable appreciation that preserves equity without the runaway spikes of recent years. Local markets will vary — some areas will outperform, others may flatten or correct slightly — so leaning on a local agent for detailed context remains crucial.

Taken together — lower rates, more homes for sale and slower price growth — the affordability equation improves. That is why economists and market analysts expect more homes to sell in 2026: buyers who were sidelined are re-entering the market, and sellers who need to move are finding opportunities to do so without extreme trade-offs.

As Mischa Fisher of Zillow summarizes, these shifts give both sides “a bit more breathing room”: buyers benefit from improved affordability and choice, while sellers benefit from price stability and more consistent demand. Practically speaking, that means buyers should be preparing (pre-approval, budgeting, defined priorities) so they can act when the right property appears, and sellers should focus on pricing and presentation to attract the returning pool of qualified buyers.

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Bottom line

Affordability won’t flip overnight, but with mortgage rates lower, inventory rising and price growth moderating, 2026 should bring a more balanced, predictable housing market — one that creates real opportunities for buyers and sensible outcomes for sellers.

🔎 If you’d like to discuss what these trends mean for your neighborhood and whether now is the right time for you to buy or sell, let’s connect — local context makes all the difference.