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Housing Affordability to Improve in 2026 Amid Lower Rates, Slow Price Growth, Realtor.com Says

BY MT Newswires | AGENCY | 12/10/25 01:27 PM EST

01:27 PM EST, 12/10/2025 (MT Newswires) -- Affordability in the US housing market is expected to improve next year amid lower mortgage rates and muted price growth, News Corp's (NWSA) Realtor.com said in a report on Wednesday.

The 30-year fixed mortgage rate in the US was 6.19% as of Dec. 4, compared with 7.04% in mid-January, Freddie Mac data showed.

"We expect a more balanced housing market in 2026, leaning slightly in buyers' favor compared with 2025, as modest improvements in affordability, driven by mortgage rate relief and slower home price growth, give incomes a bit more room to catch up," Realtor.com Chief Economist Danielle Hale said.

Last week, online real estate marketplace Zillow (ZG) (Z, ZG) and real estate brokerage Redfin separately said that the housing market is expected to benefit from improved affordability next year.

Realtor.com said that Northeast and Midwest metros are expected to dominate the list of top housing markets next year, a shift away from the South and West in 2025.

Hartford-West Hartford-East Hartford in Connecticut, Rochester in New York and Worcester in Massachusetts occupy the first three spots in Realtor.com's list of top 10 housing markets for 2026, based on combined growth in existing home sales and prices. Also on the list are metros such as Toledo in Ohio and Grand Rapids-Wyoming in Michigan.

"Our 2026 top housing markets offer better value than nearby high-cost hubs, yet steady demand and persistent inventory shortages keep prices moving upward," Hale said. "For buyers, that can mean more competition and faster price gains. For sellers and homeowners, it signals strong demand or home price appreciation and equity gains."

Realtor.com's latest report echoed its early view that buyers have flocked to what it called "refuge markets" that offer affordable options.

"Buyers are still chasing housing affordability, and that's bringing demand to 'refuge markets,'" Realtor.com said Wednesday. "These include legacy markets in the classically-affordable Midwest, like Milwaukee, Toledo, or Grand Rapids, and secondary cities in otherwise high-priced regions, such as Hartford, Worcester, Providence, or Richmond."

Price: 29.59, Change: +0.15, Percent Change: +0.51

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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