A sneak peek at where real estate is heading in 2026

“Baby, it’s cold outside” nails 2025’s real estate vibes, when steep home prices and mortgage rates froze the market solid. But what about next year? A flurry of housing forecasts all claim to have a crystal ball into what’s ahead—and because we think that they all have something to offer, we’ve rolled them into a turducken-style summary that satisfies everything you’ve been wondering about and hoping for in 2026.

Mortgage rates: Rates are predicted to drift downward next year, with the 30-year fixed loan averaging around 6.3%, according to both Redfin and Realtor.com. However, Zillow predicts this number won’t fall below 6%.

Home prices: Nationally, prices are expected to inch up 1%–4%. But when combined with lower mortgage rates, monthly housing payments are expected to shrink by 1.3%—the first annual drop since 2020, per Realtor.com. And once you factor in rising incomes and easing inflation, the typical housing payment could finally slip back into “affordable” territory (below the “30% of your gross monthly income” threshold) for the first time since 2022.

Home sales: Although listings sat on the market in 2025, lower housing costs could entice more buyers to make offers next year. Sales of existing homes are expected to soar 14% in 2026, according to the National Association of Realtors (NAR).

Rent: Housing economists are split on this: Redfin predicts rents will rise 2%–3% due to constrained apartment construction, while Realtor.com forecasts a modest 1% decline, especially in the South and West. Meanwhile, Zillow anticipates that, although apartment rents will become more affordable, rents for single-family homes will climb by 2.3%.

Bottom line: The new year rings in a market that’s shaping up to be more affordable and more active. To learn more, check out the full forecasts from Zillow, Realtor.com, Redfin, and the NAR.