The 2026 spring U.S. real estate market faces challenges from geopolitical conflicts causing mortgage rates to rise to 6.48%, dampening buyer activity. However, inventory is growing, easing the seller-buyer mismatch and improving affordability with stabilized home price growth around 1-2%. First-time buyers are gaining ground, especially in affordable regions. Commercial real estate sees easing rent trends, while policy debates on institutional ownership may reshape single-family home markets.