01/20/26

January is always a time of hope and planning for the year ahead. For those of us in the real estate world, we know potential buyers, sellers and those in the business are all looking ahead and asking the same question: What will the housing market look like in 2026?

While no one can predict the future with certainty, early forecasts and economic indicators suggest the year ahead may bring greater balance and stability (some are calling it a comeback). Remember real estate is a local business, which is why it’s important to choose partners who care about your community as much as you do, but here are five predictions from the national level to keep in mind.

Mortgage rates may ease, improving affordability. Mortgage rates have been a talking point over the last several years, and we think there will be some good news on that front.Many industry experts expect borrowing costs to continue to trend downward this year. Even small drops in interest rates can make a real difference in monthly payments, and we need to make sure buyers understand just how impactful those changes can be.

Inventory should continue to improve in most areas. After several years of limited supply, inventory is anticipated to increase across many markets. As mentioned, if rates stabilize and confidence improves, more homeowners may feel comfortable listing their properties. Additional inventory isn’t just good for buyers, though. More listings on the market allow those who want to list their homes to do so in a healthier environment with more predictable pricing and timelines.

The rate lock-in effect is fading. Since the pandemic and historic low interest rates that followed, many homeowners have delayed moving solely because of their favorable mortgage rates. This “rate lock-in” effect has limited inventory in many markets. However, recent data suggests that it’s starting to ease. The share of mortgages with rates above 6% now exceeds those below 3%, indicating more homeowners are choosing to move forward despite higher rates. Life changes still happen, and more sellers appear willing to trade a lower rate for the opportunity to begin their next chapter.

Home prices should see steady, moderate growth. Most forecasts point to more modest price growth in 2026, which we love to hear for both buyers and sellers. This type of steady appreciation supports long-term equity for homeowners without creating excessive competition for buyers. Plus, a more predictable pricing environment also helps transactions move forward with greater confidence and fewer surprises.

Fraud prevention should be part of every transaction. As digital tools continue to evolve, so do the risks that come with real estate transactions. Fraud prevention and secure communication are expected to remain top priorities in 2026. Buyers and sellers deserve to work with real estate providers who help them combat fraud. That’s why we emphasize identity verification, secure systems, good email practices and proactive education with everyone we work with!

No matter what happens this year, our teams are here to support buyers, sellers and our fellow real estate partners with secure closings, clear communication and trusted title expertise through the finish line. Reach out to your local branch anytime.