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Mortgage Rates Set to Drop to the High 5% Range by Late 2026

Mortgage rates are expected to decline to the high 5% range by the end of 2026, improving affordability for homebuyers and refinancers. This forecast is driven by anticipated Federal Reserve rate cuts, moderating inflation, stable economic growth, and a slight increase in housing supply. Lower rates could enable over 1.5 million more households to qualify for mortgages and boost home sales, while...

First-Time Home Buyer Advice and Preparation for 2026

Prepare early by organizing finances, checking credit, and getting pre-approved for a mortgage. The first quarter offers less competition and potential price advantages before spring. Affordability is expected to improve slightly due to stable or lower mortgage rates, slower home price growth, and rising incomes. Buyers should set realistic budgets, prioritize needs, and work with professionals to...

How a 1% Drop in Mortgage Rates Could Unlock 5.5 Million Buyers

A 1% drop in mortgage rates could add about 5.5 million potential homebuyers, including 1.6 million renters, by improving affordability. For example, on a $450,000 loan, monthly payments could drop by over $200, making homeownership more accessible. Lower rates also encourage current homeowners to move, increasing inventory. Certain metro areas could see up to an 8% rise in qualifying buyers, potentially...