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The American Dream: there are few people in this nation that don’t know this long-standing tradition. For several decades, those from this country and even others have been longing to achieve the American dream. To buy a home and start a life in one of the greatest nations on the planet, where the streets were thought to be paved with gold, is quite the feat.
Now, people are still working hard every day in order to be able to purchase their one piece of America. The housing market doesn’t always make that easy, though, as it is incredibly unpredictable. Throughout the country, even throughout one single state, the prices and rate of the market shift dramatically from day to day. This year is no different. Hang on to your hats, because it’s going to be a crazy ride.
So far, it seems that prices for U.S. homes are steadily rising, but the inventory on the market is still relatively tight. People are grasping at straws to get their chance to buy a house. The borrowing methods utilized by home buyers in 2026 is also changing, depending on the background of the buyer.
Economists are forecasting growth in home prices over the next 12 months. Check out the text below and stay up to date on the housing market.
Home sales were down 6.8% year-over-year, according to RedFin, mainly due to higher mortgage rates reducing affordability and slowing buyer demand.
But according to Zillow, more homeowners will finally get off the fence and list their homes for sale as mortgage rates finally start to level off and even dip. The Mortgage Bankers Association (MBA) predicts that rates will dip throughout the year and into the next, encouraging homeowners to put their homes up for sale, which will hopefully increase the number of listings and home sales in 2026.
Tight inventory continues to be a problem, with first-time homebuyers most affected. Recent reports from Redfin show that newly built homes as a share of total for‑sale inventory declined from 28.2% to about 26.8% year‑over‑year, indicating that new‑home supply as a proportion of the market has decreased relative to last year. So, it’s still not enough to meet demand.
Housing inventory is currently at a 3-4 month supply. That’s much lower than the 5- to 6-months’ supply for a balanced market.
This limited supply is due to a combination of higher construction costs, labor shortages, and cautious builder activity following recent market fluctuations.
Low inventory has contributed to sustained home price pressures, even as mortgage rates have begun to dip in 2026, and has kept competition among buyers relatively high in many regions. Some markets are seeing slightly higher new-home starts, but it remains below the long-term average needed to fully meet demand.
Mortgage applications for new home purchases as of November 2025 increased about 3.1% year‑over‑year, according to MBA Builder Application Survey data for November.
The median existing-home sales price reached $359,241 as of January 2026, a 0.1% increase over the previous year.
The current 30-year fixed-rate mortgage rate currently sits at 6.15% in January 2026, and rates are likely to dip throughout the year, housing economists predict.
Home price increases are expected to be marginal throughout 2026, which is good news for homebuyers.
If you have questions about mortgages or are ready to apply for one, we’re ready to help. Sammamish Mortgage is a mortgage firm local to Bellevue, WA, serving all Washington, Oregon, Idaho, Colorado, and California. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages, get pre-approved for a mortgage, or visit our website to get an instant rate quote.
A housing market forecast helps buyers and sellers understand expected trends in home prices, inventory levels, and mortgage rates so they can make more informed real estate decisions.
Yes — economists generally forecast home price growth over the next 12 months, though the rate of increase may be moderate compared to past years.
Mortgage rates directly impact affordability. When rates dip or stabilize, more buyers may enter the market, helping support home sales and prices.
Inventory — the number of homes for sale — influences competition and pricing. Tight inventory tends to keep home prices elevated and makes it harder for buyers to find homes.
Many forecasts suggest a modest increase in home sales if mortgage rates ease and more homeowners list their homes for sale, though conditions vary by region.
Tight supply means fewer homes are available relative to demand, which can lead to competitive bidding and sustained price pressure, especially for first-time buyers.
Because market conditions can change with economic shifts, checking forecasts regularly (monthly or quarterly) can help you stay up to date and time your plans better.
This national forecast gives a broad view, but local markets can behave differently. Consider combining national insights with local data — especially if you are buying or selling in a specific area.
No forecast can guarantee precise outcomes. They are educated projections based on current data and trends, and actual results can vary due to economic shifts, policy changes, or unexpected events.
Home price increases are expected to be marginal throughout 2026, which is presented as good news for homebuyers.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.