Mid-Year Housing Market Update: The Market is Opening. Opportunity Is Too.

We've reached the mid-point of the year, making it the perfect time to take a closer look at today's housing market and where things may be headed. While market conditions continue to evolve, there are encouraging signs for both buyers and current homeowners.

The Rate Reality

Rate news is mixed. As of June 25, 2026, Freddie Mac reported a 30-year fixed mortgage average of 6.49%. While this is higher than the historically low rates experienced in the early 2020s, it is lower than the 6.77% average reported at the same time last year.¹

Where Will Rates Go From Here?

At its June meeting, the majority of members of the Federal Reserve Board forecast at least one policy rate hike before the end of the year. However, geopolitical events often have a greater influence on mortgage rates, making future increases uncertain.

Waiting for Rates?

If rates are holding you back from making your next move, let's talk. There are ways to save. Plus, the rate you pay on today's purchase may bring a lower monthly payment than buying at a higher price tomorrow, even if rates drop.

Affordability Is Better Than It May Feel

Recent housing data shows affordability has improved compared to a year ago:

• This spring, homebuyers had 3% more purchasing power than a year ago, with the monthly payment on the average-priced home $48 lower than last May.²

• Purchasing the average-priced home requires 29.8% of median household income, down from 31.6% a year ago.²

• Home price appreciation is slowing, yet prices are still rising. Nearly 70% of major markets posted annual gains in May.²

  
  

Inventory Is Slowly Opening Up

Housing inventory continues to improve, creating additional opportunities for buyers.

• More than 37 million homeowners are sitting on mortgage rates below 5%, making many would-be sellers reluctant to trade for a higher rate.³

• However, more homeowners are finding reasons to move. The supply of homes for sale rose 8% year over year in March.⁴

• Sellers are becoming more realistic by listing at lower prices and helping buyers with more buydowns, credits, or other concessions.²

  
  

Equity as an Asset

Homeowners who are staying put still have significant financial opportunities through their home equity.

• Homeowners who chose to stay with their low rate tapped their equity at the highest first-quarter pace since 2021.²

• Homeowners currently hold $11 trillion in available equity—the amount they can access while still maintaining at least 20% ownership of their home.⁵

  
  

The New Construction Opportunity

The new construction market continues to provide attractive opportunities for buyers.

For about a year, the median price for a new home has been lower than the median price of an existing home.⁶ Additionally:

• 60% of builders offered sales incentives in April 2026, marking the 13th consecutive month at or above 60%.

• 36% of builders cut prices outright, with average reductions of 5%.⁷

  
  

Looking Ahead

Whether you're ready to buy, thinking about accessing your home's equity, or simply keeping an eye on the market, understanding today's trends can help you make informed decisions. As inventory improves, affordability shows signs of easing, and new construction offers additional opportunities, today's market may provide more options than many buyers realize.

Ready to take the next step? Visit our branch pages to connect with a Loan Officer near you and explore your home financing options.

Sources:

1. Freddie Mac, Primary Mortgage Market Survey (PMMS).

2. ICE Mortgage Monitor, June 2026.

3. ICE Mortgage Monitor, February 2026.

4. ICE Mortgage Monitor, April 2026.

5. ICE Mortgage Monitor, March 2026.

6. NAHB, Eye on Housing, "New vs. Existing Home Prices in Q1 2026," May 29, 2026.

7. NAHB, "Builder Sentiment Posts Notable Decline on Economic Uncertainty," April 15, 2026.