What’s on the Horizon for 2026?

Mortgage interest rates have come down meaningfully from their November 2023 highs near 8% and are now hovering around 6.25%. I expect rates to stabilize through the first quarter of 2026. If inflation continues to cool from today’s 3.2% toward the Fed’s 2% target, we could eventually see rates dip into the mid-5% range.

Here’s the key perspective many buyers miss:

On a $300,000 mortgage, a 0.25% rate drop saves about $47 per month.

 That same $300,000 home appreciating at a conservative 5% annuallybecomes $315,000 in 12 months—roughly $1,250 per month in gained value.

So the real question becomes:

Does it make sense to wait for a $47 monthly payment reduction while potentially missing out on $1,250 per month in appreciation?

That’s why our 2026 strategy is simple:

Buy when you’re ready or need to. Refinance later if rates improve—but don’t miss the appreciation.

It’s hard to get rich quickly.

It’s very achievable to build wealth slowly—and homeownership remains one of the most reliable paths.

For perspective, the average 30-year fixed mortgage rate over the last 50 years is approximately 7.35%. By historical standards, today’s rates are far from extreme.

 The Bigger Picture - Home Prices

Home prices are expected to continue rising. The U.S. is still short nearly 4 million housing units, and builders are producing only about 1 million homes per year. Supply simply isn’t keeping up with demand.

Affordability is the buzzword heading into the 2026 buying season, and rightly so. Post-pandemic inflation has impacted everyone’s budget. While we can’t control the market, we can control cash flow.

High-interest credit cards, car payments, subscriptions, and installment debt are quietly eroding affordability for many buyers. Sitting down with a professional to identify and restructure these outflows often makes a dramatic difference—frequently turning a hesitant “someday buyer” into a confident homeowner with a clear plan.

If you’d like to bounce ideas around or explore strategies, don’t hesitate to reach out.