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Housing Forecast 2026: Mortgage Rates Remain Above 6%, but Affordability Improves Modestly

 

Mortgage rates will continue to average above 6% next year, but affordability will improve modestly as the typical monthly payment falls below 30% of a household's income for the first time since 2022, the Realtor.com® economic research team predicts in its 2026 housing forecast.

The forecast predicts mortgage rates will average 6.3% across 2026, a slight improvement from the 6.6% full-year average expected for 2025, but still well above the 4% historic average recorded from 2013 to 2019.

Nationally, home prices will continue to grow 2.2% through the end of next year, after rising by 2% in 2025, the forecast indicates. However, incomes and overall inflation are expected to continue rising faster than growth in home prices, delivering a slight boost to affordability.

Read the complete story and review graphs; HERE  

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