The Housing Market Is Shifting Again. Here’s What Buyers and Sellers Should Know.

The housing market is shifting again, and there’s a lot happening as we head into the final stretch of 2026.

Mortgage rates have taken a bad turn, affordability continues to be a challenge, and homes aren’t selling quite the way they did a few years ago. At the same time, people are still buying, homes are still selling, and there are opportunities in this market for people who understand what’s actually happening.

Here are a few of the biggest things I’m watching right now.

Mortgage Rates Are Moving in the Wrong Direction

For a while, a lot of buyers were operating under the assumption that they could simply wait for mortgage rates to come down. That strategy is looking a little less certain.

Rates have moved higher again, and the possibility of borrowing costs climbing even further is very real. After several years of rate volatility, there’s still no clear indication that buyers can count on significantly lower rates anytime soon.

That doesn’t mean everyone needs to rush out and buy a house. But if your entire plan has been based on waiting for a much lower mortgage rate, it may be worth taking another look at the numbers.

There’s no guarantee that rates will move in the direction we want them to, or that home prices will cooperate if they do.

Is Buying Now a Mistake?

This is probably one of the biggest questions buyers are asking us right now.

Interestingly, a recent study looking at more than two decades of housing data found that buying now beat waiting two years 61% of the time. That doesn’t mean buying today is automatically the right decision for everyone. Your finances, how long you plan to stay in the home, the payment you’re comfortable with, and what’s happening in your local market all matter.

But it does challenge the idea that waiting is always the safer financial decision. Interest rates are only one part of the equation. While you wait for a better rate, home prices can change, inventory can change, competition can increase, and you’re also giving up time you could have spent building equity.

The better question usually isn’t, “Should I wait for rates to drop?” It’s, “Does buying make sense for me at today’s numbers?” Those are two very different questions.

Sellers Have to Work Harder, Too

The shift isn’t just affecting buyers. There was a period when putting a home on the market almost guaranteed attention. In some areas and price ranges, sellers could get away with aggressive pricing, limited showing availability, or a home that wasn't completely ready for the market.

That’s not the environment we’re in today. We’re seeing some homes sit while others continue to sell quickly. The difference often comes down to the fundamentals: price, condition, presentation, showing access, marketing exposure and, in some cases, seller concessions. Buyers have more choices than they did during the most competitive years of the market, and higher monthly payments have made them more selective about those choices.

That doesn’t mean it’s a bad time to sell. It means the strategy matters more. A well-prepared home that is positioned correctly for the current market can still attract plenty of attention. But sellers have to understand what they’re competing against and give buyers a compelling reason to choose their home.

The Affordability Problem Nobody Talks About Enough

Mortgage rates and home prices get most of the attention when we talk about affordability, but there’s another expense becoming increasingly important: homeowners insurance. Premiums have risen dramatically in recent years, and that increase gets added directly to the monthly cost of owning a home.

For buyers, that means the price of the house and the mortgage rate don't tell the entire story. Taxes, insurance, HOA fees and maintenance all affect what a home really costs each month.

For existing homeowners, rising insurance premiums can also mean a noticeable increase in a mortgage payment even when the mortgage itself hasn't changed. It’s another reason we encourage buyers to look at the complete financial picture rather than focusing on one number.

So, What Should You Do?

There isn't one answer that works for everyone in this market. For some buyers, moving now may make sense even with higher rates. Others may be better off waiting. Some homeowners may be surprised by how much demand there is for their home, while others may need to adjust their expectations based on current competition.

What I wouldn't recommend is making a decision based entirely on a headline about mortgage rates or housing prices. Real estate is local, and your individual situation matters.

If you're thinking about buying, selling, or you're simply curious about what your home is worth in today's market, give us a call. We can look at the actual numbers and help you figure out what makes sense for you.

— Rob