Home price appreciation in 2026 is expected to slow to 1.2%, down from 2.2%, improving affordability despite mortgage rates averaging 6.3%. Existing-home sales are forecasted to rise slightly to 4.10 million. Inventory growth is projected at 3.6%, lower than earlier estimates. Homeownership rates may increase to 65.1%, while rents are expected to decline 1.2%. Affordability gains stem from slower price growth rather than lower mortgage rates.