Housing market improves but affordability still a concern

Homebuyers are starting to see signs of relief, and the momentum could roll into next year

Homebuyers are starting to see signs of relief, and the momentum could roll into next year.

While 2025 has been more of a “balancing year” for the housing market, “2026 will be better for buyers,” Realtor.com senior economist Joel Berner told NBC News.

This shift in the market is in part due to a drop in mortgage rates and softening home price growth, he said.

The 30-year fixed-rate mortgage is currently 6.18%, according to Freddie Mac, a notable decline compared to the high rate of 7% from earlier this year. Although current rates are still significantly higher than those buyers experienced during the pandemic, Berner said he’s seen a pickup in activity.

He also said buyers won’t see rates as low as 3% or 4% next year, but a drop below 6% is “definitely in the realm of possibility.” Buyers haven’t seen rates below 6% since September 2022, according to Freddie Mac data.