A recent Bank of America survey asked potential homebuyers what would make them feel more confident about buying a home. The top answers? Affordability—specifically, home prices and mortgage rates.
Here’s the good news: while the broader economy may still feel uncertain, the housing market is showing positive signs in both areas. Here’s what buyers need to know and how it may impact your plans.
Home Prices Are Moderating
Over the past few years, home prices rose quickly, leaving many buyers feeling priced out. From 2020 to 2021, prices increased by 20% in just 12 months. Today, however, national experts expect single-digit price increases—a much more manageable pace.
Trends will vary depending on your local market. Some areas may still see price growth, while others could experience slight declines.
For buyers, this moderation makes budgeting easier and reduces the stress of navigating rapidly rising home values. Prices aren’t dropping dramatically—they’re simply stabilizing, which opens opportunities for buyers ready to make a move.
Mortgage Rates Are Easing
Mortgage rates have decreased from their recent highs, giving would-be buyers some relief. As Lisa Sturtevant, Chief Economist at Bright MLS, notes:
“Slower price growth coupled with a slight drop in mortgage rates will improve affordability and create a window for some buyers to get into the market.”
Even a small dip in mortgage rates can significantly impact your monthly payment. While rates may still fluctuate, the trend is toward low to mid-6% rates, offering more favorable conditions than a few months ago. Depending on the economy, rates may even drop further.
Why This Matters for Buyers
Even if confidence in the economy is low, the housing market is adjusting in a way that benefits buyers. Prices are stabilizing, and rates are easing—two factors that make entering the market less intimidating.
Bottom Line
If you’re thinking about buying a home in 2026, now is an excellent time to connect with a local real estate professional who can help you navigate your market.
For guidance in your area, reach out to:
Michael Olubajo
Associate Broker | Coldwell Banker Realty
License #: AB069542
Phone / Mobile: (267) 994-9879
Email: michael.olubajo@cbpref.com
