The question remains for buyers and sellers who spent the past year on the sidelines: \u201cHow is the housing market right now?\u201d We’ve put together a comprehensive guide to help you understand the current housing market and what the future may hold.<\/p>\n
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\n <\/div>\n \n How Much Is Your Home Worth Now?<\/h3>\n
Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.<\/p>\n \n
What to expect in 2026: Predicted real estate trends<\/h2>\n
From fluctuating home prices to a rebound in inventory and improving interest rates, these are the trends we predict could shape the housing market for the rest of 2026.<\/p>\n
A recession is unlikely<\/h3>\n
According to HomeLight\u2019s Top Agent Insights for 2026<\/a>, although recovery will likely remain slow, the year will mark recalibration rather than a recession. 68% believe there will be an increase in inventory that will stimulate more market activity.<\/p>\n \u201cWe are navigating a period of recalibration \u2014 not collapse,\u201d says Kent Rodahaver<\/a>, a top agent who serves West Central Florida. \u201cFor buyers, this means opportunity with leverage; for sellers, it means strategy, pricing precision, and professional guidance matter more than ever.\u201d<\/p>\n \u201cI\u2019m excited to leave housing hyperbole in 2025 and spread facts, much like homeowners in 1971 facing 7.33% interest rates wouldn\u2019t have bought until 1993 \u2014 had they waited for rates to lower,\u201d says Candace Carew<\/a>, a top-rated agent in Dallas, Texas. \u201cThey would\u2019ve rented for 22 years while real estate value quadrupled.\u201d<\/p>\n \u201cWe have weathered a storm caused by high interest rates (relative to recent years) and economic uncertainty,\u201d says Brian Bellairs<\/a>, a top agent in Beaverton, Oregon, who has seen 34 years of market ups and downs. \u201cDeclining interest rates in 2026 should jump-start the market, and a balanced real estate market should return in 2026.\u201d<\/p>\n Nationally, top agents surveyed by HomeLight consider the current market as a buyer\u2019s market (42%)<\/a>. Regionally, the Midwest is seeing the power shift from a seller\u2019s market midway in 2025<\/a>, entering 2026 with opinions split (36% say balanced; 36% say seller\u2019s market). The opposite is happening in the Pacific region, from a buyer\u2019s market in 2025 to a split opinion (40% buyer\u2019s market; 40% balanced).<\/p>\n Meanwhile, the Northeast continues to lean towards a seller\u2019s market, while the South Atlantic, South Central, and Mountain regions remain buyer\u2019s markets, according to agent insights.<\/p>\n By the end of 2025, mortgage rates had settled into the 6.15%-6.20% range<\/a> and continued a downward trajectory at the beginning of 2026. In HomeLight\u2019s\u00a0 Lender Insights & Predictions for 2026, 87% of loan officers surveyed believe that there will be an increase in mortgage originations<\/a> this year, with 44% predicting a gain of more than 10%.<\/p>\n Lenders mention a significant drop or stabilization in mortgage rates as the main driver of market activity<\/a> in 2026. At the start of 2025<\/a>, a 30-year fixed-rate mortgage averaged 6.91%, while a 15-year fixed-rate mortgage averaged 6.13%. As of January 2026, following three mortgage cuts<\/a> to close the previous year, rates have dipped to 6.15% and 5.44%, respectively.<\/p>\n Expert predictions are mixed<\/a> on whether the Fed will cut rates further in the first half of the year. “We should rely on forecasts that are informed by a broad set of indicators<\/a> and \u2060by ongoing engagement with businesses and communities across the country,” Federal Reserve Vice Chair for Supervision Michelle Bowman said.<\/p>\nMidwest and Pacific regions are rebalancing<\/h3>\n
Mortgage rate improvements will signal more home purchases<\/h3>\n