{"id":12196,"date":"2026-07-14T17:22:38","date_gmt":"2026-07-14T17:22:38","guid":{"rendered":"https:\/\/www.fintechpulse8.com\/?p=12196"},"modified":"2026-07-14T17:22:38","modified_gmt":"2026-07-14T17:22:38","slug":"real-estate-giant-updates-mortgage-rate-home-price-predictions","status":"publish","type":"post","link":"https:\/\/www.fintechpulse8.com\/?p=12196","title":{"rendered":"Real estate giant updates mortgage rate, home price predictions"},"content":{"rendered":"

<\/p>\n

High mortgage rates and housing prices are two main reasons Americans are struggling to afford homes in 2026.<\/p>\n

Freddie Mac mortgage rates have hovered around 6.5% for eight weeks. Housing prices hit an all-time high in June, according to a Redfin report.<\/p>\n

Real estate experts track and predict various U.S. housing market data. But it makes sense that the typical homebuyer would care the most about these two factors.<\/p>\n

Realtor.com, a leading real estate platform, releases an annual housing market forecast every six months. On July 8, the company published its predictions for the rest of 2026.<\/p>\n

I’ll break down the specifics, but I was surprised by the Realtor.com 2026 Housing Forecast Midyear Update’s overall message: Affordability for homebuyers is improving, and the company expects that trend to continue.<\/p>\n

“The housing market is inching forward as sellers reset expectations, price growth cools, and buyers gain more negotiating power,” Realtor.com writes.<\/p>\n

Realtor.com keeps it mortgage rate prediction flat<\/h2>\n

In the original Realtor.com 2026 Housing Forecast, published in Dec. 2025, the company predicted that both the annual average and year-end 30-year fixed mortgage rate would be 6.3%<\/strong>.<\/p>\n

The projection is unchanged in Realtor.com’s midyear report.<\/p>\n

Yes, Realtor.com still projects that the 30-year rate will end 2026 at 6.3%<\/strong>, and that 6.3% will be the annual average.<\/p>\n

I understand that this might seem like bad news to homebuyers. How is a stagnant mortgage rate prediction supposed to help with housing affordability?<\/p>\n

Related: Americans must face long-term reality after mortgage rate news<\/strong><\/p>\n

First of all, Realtor.com notes in its report that while the Iran war has kept mortgage rates in the mid-6.5% range, rates are still better than in 2025.<\/p>\n

It’s true. As of July 9, the 30-year fixed mortgage rate was 23 basis points lower than this time last year, according to Freddie Mac. The rate held at 6.5% or higher through the rest of summer 2025, then started to decrease in September. Then, rates stayed in the 6.3% range through mid-October.<\/p>\n

So, there’s definitely reason to believe that \u2014 although we’d all love for mortgage loan rates to be lower \u2014 they could help make homes more affordable in 2026 than 2025.<\/p>\n

It’s also important to note that Realtor.com did not predict higher<\/em> rates than in December. And when we combine this flat prediction with the company’s other expectations, the message of improved affordability starts to make sense.<\/p>\n

\n

Realtor.com predicts that the average 30-year mortgage rate in 2026 will be 6.3%.<\/p>\n

MoMo Productions &sol; Getty Images<\/p>\n<\/figcaption><\/figure>\n

Realtor.com expects even slower home price growth in 2026<\/h2>\n

In my years of covering the housing market, I’ve witnessed a discouraging trend for homebuyers: In general, home values increase over time.<\/p>\n

Higher home values and sales prices feel great once you’re a homeowner. But when you’re buying, it’s a frustrating truth.<\/p>\n

So, it isn’t at all surprising that Realtor.com projected higher median existing-home price, both in its December and July reports.<\/p>\n

The company predicted that median prices would increase by 2.2% in its December report. But its midyear update foresees prices rising by only 1.2%<\/strong> overall in 2026.<\/p>\n

More Housing Market:<\/strong><\/p>\n

    \n
  • Zillow sees change in housing market, home values<\/strong><\/li>\n
  • Social Security inaction could push mortgage rates higher<\/strong><\/li>\n
  • Redfin reveals change in housing market, home sales<\/strong><\/li>\n<\/ul>\n

    A 1% drop in price-growth projections is a win for homebuyers. When Realtor.com originally predicted a 2.2% price increase this year, 2025 prices had risen by 2% in 2025. Now, year-to-date home prices have inched up by just 1% \u2014 leading the company to revise its number.<\/p>\n

    “Monthly payments for 2026 homebuyers are now expected to register 1.9%<\/strong> below last year\u2019s payment as our mortgage rate outlook is largely unchanged and our price growth expectations have softened,” Realtor.com writes.<\/p>\n

    And that’s where the stagnant mortgage rate predictions come back in. When you combine unchanged mortgage rates and lower home prices, monthly housing payments decrease.<\/p>\n

    Realtor.com data put the median monthly payment at $2,135 in 2025. For 2026, its prediction is a median housing payment of $2,095<\/strong>.<\/p>\n

    Economic factors that could help with home affordability<\/h2>\n

    May inflation grew by 4.2%, according to the Bureau of Labor Statistics. In April, it was up by 3.8%.<\/p>\n

    Looking at the Consumer Price Index (CPI), one of the key measures of inflation, Realtor.com expects a median inflation growth of 3.5% in 2026. Meanwhile, it only expects home prices to rise by 1.2%.<\/p>\n

    Even if either of these numbers end up being a little bit off, the gist remains the same: It’s likely that home prices will increase, but the growth rate will not keep up with inflation.<\/p>\n

    “With inflation expected to run at a 3.4% rate for the year, home prices are actually falling in real terms which will reduce housing costs relative to other budget items,” Realtor.com writes.<\/p>\n

    The company also expects net household income growth to rise by 3.9% in 2026 (up from its December projection of 3.6%).<\/p>\n

    The combination of Realtor.com’s updated predictions slower home price growth and stronger income growth would mean homebuyers have more money available to put toward a house.<\/p>\n

    Low housing inventory is the main driver behind the U.S. home affordability crisis. A recent Zillow study revealed that the country needs to build 4.7 million homes just to meet the current home-buyer demand \u2014 and that doesn’t even count the homes we would need to keep up with growing demand as time goes on.<\/p>\n

    When inventory is low, houses generally become more expensive. Supply can’t meet demand, creating competition among buyers and giving sellers more power in real estate transactions.<\/p>\n

    The 21st Century ROAD to Housing Act officially became law on July 11. A main part of this law is to make it easier to build homes and help the housing shortage.<\/p>\n

    The effects of this law could help with inventory and make homes more affordable for Americans. Realtor.com writes that it will keep an eye on its impact in coming years. Future Realtor.com home price and sales predictions could shift as a result.<\/p>\n

    Key takeaways for homebuyers from Realtor.com’s predictions<\/h2>\n
      \n
    • Mortgage rates are holding steady.<\/strong> If you’ve been waiting for home loan rates to drop before buying a house, I’ve got bad news \u2014 that probably won’t happen anytime soon. Rates may not spike, but they likely won’t plummet, either.<\/li>\n
    • History puts current mortgage rates in perspective.<\/strong> National mortgage rates are down since this time last year, as Realtor.com pointed out. I also crunched the numbers, and the average 30-year fixed rate since April 1971, when Freddie Mac started tracking rates, is 7.68%<\/strong>. Rates may be high compared to the early 2020s, but they are well below the historical average.<\/li>\n
    • Home prices growth is cooling. <\/strong>Remember, with occasional exceptions, housing prices increase over time. But the good news is that median prices are growing relatively slowly, and Realtor.com expects that slow trend to continue for the rest of 2026.<\/li>\n
    • Inventory is still too low, but could improve.<\/strong> Now that the 21st Century ROAD to Housing Act is law, inventory could increase, which would help housing prices. However, it’s unclear how long it will take for more homes to finish being built and how significant the impact will be.<\/li>\n
    • It could be a good time to buy a house.<\/strong> As long as you can comfortably afford to buy a house, I think it’s worth looking into. There’s pretty much no reason to wait for lower rates, and median housing payments are a little lower than last year. Just don’t overextend your budget, and be sure to shop for mortgage lenders to find the best deal.<\/li>\n<\/ul>\n

      Related: Goldman Sachs issues major prediction for US housing market<\/strong><\/p>\n

      #Real #estate #giant #updates #mortgage #rate #home #price #predictions<\/p>\n","protected":false},"excerpt":{"rendered":"

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