What's Happening?
Real estate experts are weighing in on whether potential homebuyers should delay their purchases until 2026, given the current and projected mortgage rate trends. According to a September report from Fannie Mae, average U.S. mortgage rates are expected to end 2025 at 6.5% and decrease to 6.1% in 2026. This projection suggests that waiting could result in lower mortgage rates for buyers. However, the decision to buy now or later is complex and depends on individual financial situations and local market conditions. Some housing markets, particularly in states like California, Florida, Texas, and North Carolina, have seen price moderation, with expectations of further declines. Nationally, however, home prices are anticipated to rise, with a projected 4%
increase in 2026 following a 3% rise in 2025.
Why It's Important?
The decision to buy a home is significant for many Americans, as it involves substantial financial commitments and long-term planning. The potential decrease in mortgage rates could make homeownership more affordable for some, but waiting could also mean missing out on current market opportunities. Rising home prices nationally could offset the benefits of lower mortgage rates, making it crucial for buyers to consider their local market conditions. Additionally, the timing of a home purchase can impact negotiations, with the end of the year often presenting less competition and more motivated sellers. This dynamic can provide buyers with better negotiating power and potentially lower purchase prices.
What's Next?
Potential homebuyers will need to closely monitor mortgage rate trends and local housing market conditions to make informed decisions. As 2026 approaches, those considering delaying their purchase should evaluate whether the anticipated rate decrease will outweigh potential price increases in their desired areas. Real estate professionals may continue to advise clients based on evolving market conditions, emphasizing the importance of personalized financial assessments. Buyers should also consider broader economic factors, such as inflation and employment trends, which could influence both mortgage rates and housing prices.
