United States: Affordability Improves in 2026

Home price growth is expected near ~1% this year, slower than inflation and the earlier outlook, improving affordability as prices fall in real terms.
The first half of 2026 brought stability, not momentum, as sellers adjusted expectations and buyers gained leverage; existing-home sales were still forecast to improve modestly.
Mortgage rates were projected to stay in the low-6% range this year, helping monthly payments fall ~2% yearly as price growth cooled.
Buyers and sellers showed staying power this year, while more realistic asking prices and slower inventory growth helped keep deals moving forward.
Looking ahead, momentum is expected to build through the second half of 2026 as previously sidelined buyers and sellers find more workable terms.