Will Home Prices or Mortgage Rates Fall in 2026? Here’s What Buyers and Sellers Can Expect

The 2026 housing market may improve slightly but will still face high mortgage rates near 6%, elevated home prices, and affordability challenges. Home prices are expected to grow modestly, with regional variations. More homeowners may sell as the "lock-in effect" eases, increasing inventory. Builders will likely continue offering incentives, and sellers may need to lower prices to attract buyers amid ongoing economic uncertainty.