In 2026, the U.S. housing market will see modest growth with mortgage rates averaging 6.3% and home prices rising 2.2%. Existing-home sales are expected to increase 1.7% to 4.13 million, while inventory grows nearly 9%, creating a more balanced market favoring buyers. Affordability improves as incomes outpace inflation, and rents decline, especially in the South and West. New construction offers affordable options amid steady economic growth and some risks.