If you felt like 2025 was a test of patience, you weren’t alone. Affordability pressures and economic uncertainty stalled many conversations and kept both buyers and sellers on the sidelines. But as we move into 2026, the data suggests the market is beginning to “unlock”.
Here is a breakdown of what to expect from the housing market, from Keeping Current Matters, this year and why conditions are becoming more favorable for a move.
1. Home Prices Are Moderating (Not Crashing)
Despite headlines that might cause concern, experts agree that a national price crash isn’t in the cards. Instead, we are seeing a healthy rebalancing.
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Moderate Growth: Nationally, home prices are projected to rise by an average of 1.6% in 2026.
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Local Shifts: While some markets that boomed too fast during the pandemic might see minor dips, most states continue to see blue-sky growth.
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The Big Picture: Even with small local corrections, national home prices have climbed 48.5% over the last five years.
2. Mortgage Rates Have Found a New Normal
The days of 3% rates are likely behind us, but 2026 offers much more stability than the volatility of last year.
2026 Mortgage Rate Projections
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Forecasted Stability: Most experts, including Fannie Mae and Wells Fargo, project rates to stay relatively flat throughout 2026, likely landing between 5.9% and 6.4%.
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Increased Buying Power: Rates are down nearly a full percentage point from their May 2025 peak. For a typical buyer, this can translate to saving hundreds of dollars on a monthly mortgage payment.
3. More Options, More Opportunities
One of the biggest struggles of the past two years was the lack of homes for sale. That is finally changing. Here is the Housing forecast breakdown from Keeping Current Matters
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Inventory Boost: Following a 15% growth in inventory in 2025, experts predict another 8.9% increase in homes hitting the market in 2026.
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More Sales: With more homes to choose from and stabilized rates, total home sales are forecasted to exceed 5.1 million this year, a significant jump from the previous two years.
The Bottom Line
The 2026 market is about affordability and opportunity. While it won’t suddenly become “easy,” the combination of lower rates, more inventory, and slower price growth is creating a bridge for those who have been waiting to make their next move.