2026 U.S. Housing Market Outlook: Lower Monthly Payments, Growing Affordability

As we move into 2026, the national housing conversation is shifting in a meaningful way. After several years defined by rising rates and affordability pressure, leading housing economists are pointing to a more balanced environment ahead, one where monthly payments may finally ease, even if home prices remain relatively stable.

According to recent forecasts from the National Association of REALTORS® and other housing analysts, mortgage costs are expected to trend lower in 2026. While price growth is projected to be modest rather than dramatic, the combination of softer rates and steady inventory could result in lower monthly payments for buyers, something we haven’t consistently seen since before 2020.

This doesn’t mean the market is turning “cheap” overnight. Instead, it signals a healthier equilibrium. Buyers may find it easier to plan, budget, and move forward with confidence, while sellers can expect a more informed, deliberate pool of purchasers.

For clients considering relocation or a move in the coming year, this outlook matters. A calmer rate environment paired with realistic pricing creates space for thoughtful decisions rather than rushed ones. In my experience, those are the conditions where the best outcomes happen for both sides of a transaction.

Sources:
National Association of REALTORS® (NAR), 2026 Housing Outlook
Fannie Mae Housing Forecasts
Freddie Mac Economic & Housing Research