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2026 Housing Market: Brace for Flat Prices & Rate Drops?
14 Dec, 2025
Summary
- Home prices are expected to remain flat through January 2026, with slow growth thereafter.
- Mortgage rates may fall to 6.4% by year-end 2025 and 5.9% by end of 2026.
- Home sales are predicted to increase in 2026, potentially by 8.9% year-over-year.
The real estate market in late 2025 presents a complex picture for both buyers and sellers. National average home prices have remained essentially flat, a contrast to the seller-friendly conditions of previous years. This stagnation, coupled with uncertainty surrounding mortgage rates, creates a challenging environment. However, expert forecasts suggest potential changes heading into 2026, indicating that market dynamics are cyclical.
