In 2025, housing affordability remained challenging, but home prices and mortgage rates slightly declined later in the year. In 2026, homebuying is expected to increase with mortgage rates around 6% and moderate price growth. Pent-up demand from renters in their 30s will boost sales. Seller’s markets will persist in supply-constrained Northeast and Midwest areas, while buyer activity will focus on Southern and Southwestern metros. Builders may lead the market due to growing inventory and incentives.