$\"The$ \n

If the housing market feels confusing right now, you\u2019re not alone.<\/p>\n

Mortgage rates have risen. Home sales haven\u2019t picked up like expected. And many buyers and sellers are wondering when things are going to feel easier or be more affordable<\/a>.<\/p>\n

The truth is: a lot changed over the first half of this year.<\/strong><\/p>\n

Back at the end of 2025, economists were forecasting a much stronger housing market for 2026. They expected mortgage rates to come down, affordability to improve more dramatically, and home sales to rebound.<\/p>\n

But lingering inflation, economic uncertainty, and growing geopolitical tensions overseas pushed mortgage rates higher than expected. And because rates stayed elevated for longer, many buyers continued to hold off.<\/p>\n

That\u2019s why experts<\/a> recently revised their housing forecasts<\/a> for the rest of the year (see graph below<\/em>):<\/p>\n

$\"a$ <\/p>\n

So, what does this actually mean for you? Let\u2019s break it down.<\/p>\n

Mortgage Rates May Remain Elevated<\/strong><\/h4>\n
While just about everyone wants mortgage rates to go back to the uppers 5s or low 6s we saw at the start of the year, as of right now, the experts don\u2019t think that\u2019s likely to happen this year.<\/p>\n
Instead, forecasts have been updated from the low 6s they originally projected. Many industry organizations are saying rates will stay in roughly the mid 6s this year. The good news is, that\u2019s still lower than rates were a year ago<\/a>.<\/p>\n
Of course, this is based on what we know today. If the conflict overseas comes to an end or inflation drops, this could change. But if you\u2019re waiting for lower rates, it may not pay off in the way you expect.<\/strong><\/p>\n
Existing Home Sales Revised Lower<\/strong><\/h4>\n
Back in late 2025, experts expected we\u2019d sell an average of 4.5 million homes this year. Now? That\u2019s dropped down a bit to 4.2 million.<\/p>\n
That tells us something important: buyers are still hesitant because affordability remains challenging.<\/strong><\/p>\n
Higher mortgage rates have made monthly payments harder to manage, especially for first-time buyers. And that\u2019s slowed the pace of the market compared to what was originally expected. But even though the forecast was revised down, we\u2019re still expected to sell more homes than last year.\u00a0<\/strong><\/p>\n
Once geopolitical tensions resolve and rates begin to settle down, many experts believe that group of buyers will be ready to jump back in. As Lawrence Yun, Chief Economist at NAR, explains:<\/p>\n
\n
\u201cThere is sizable pent-up demand that could be released into the market.\u201d<\/em><\/p>\n<\/blockquote>\n
There has already been a few glimmers of renewed hope lately. In recent months, pending homes sale have been improving month-over-month<\/a> despite higher rates.<\/p>\n
So, if you\u2019re able to afford a home at today\u2019s rates, it could still make sense to buy now.<\/strong> Because otherwise, if you wait, you\u2019ll have more competition (and potentially fewer homes to choose from) when those others buyers jump back in.<\/p>\n
New Home Sales Also Slowed<\/strong><\/h4>\nBuilders also expected to have a stronger year. Earlier forecasts<\/a> projected new home sales would top 700k in 2026. Now, economists expect we\u2019ll be just shy of that number<\/a>.<\/p>\n
Again, mortgage rates are a major reason why.<\/p>\n
But the upside for buyers is that builders may be even more motivated to sell. <\/strong>That means builder incentives<\/a>, negotiation opportunities, and pricing flexibility may continue in many markets. So, if you live somewhere where there\u2019s more new construction, this may actually be a bright spot for you.<\/p>\n
Builders could be more ready to negotiate, and that gives you more leverage to get a better deal.<\/p>\n
Home Prices Are Still Expected To Rise<\/strong><\/h4>\nThis is one of the most important takeaways from the entire forecast. Even though sales activity is slower, on average, experts did not<\/em><\/strong> <\/em>revise their home price forecast<\/a> downward.<\/p>\n
They still expect prices to rise nationally this year.<\/strong><\/p>\n
Why? Because while buyer demand has softened, the number of homes for sale<\/a> is still relatively limited overall. That imbalance is helping support prices, even in a slower market.<\/p>\n
Of course, conditions vary depending on where you live. Some markets are cooling more than others. But nationally, experts are still projecting steady price growth<\/a> \u2014 not a major decline. And that should be a comfort whether you\u2019re buying or selling.<\/p>\n
Because sellers don\u2019t want a major drop in prices. And while buyers may think <\/em>they do, generally you feel better about a big purchase when it doesn\u2019t depreciate right away.<\/p>\n
Bottom Line<\/h3>\n
The housing market hasn\u2019t rebounded as quickly as experts originally hoped. But that doesn\u2019t mean it\u2019s stalled.<\/p>\n
Higher inflation and lingering economic uncertainty caused economists to revise their forecasts for this year. But importantly, when those two things settle down, many experts believe the market will regain its momentum.<\/p>\n
So don\u2019t see this revision in forecasts as a sign of trouble. See it as a temporary reaction to overall conditions and uncertainty.<\/p>\n
If you want to know what\u2019s happening in your local market, and what it could mean for your plans for the rest of this year, talk to a local agent.<\/strong><\/p>\n<\/div>\n\n<\/body>","protected":false},"excerpt":{"rendered":"
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