A recent survey from Bank of America asked would-be homebuyers what would help them feel better about making a move. The answers had one clear theme: affordability. Buyers want improvement in both home prices and mortgage rates — and the good news is, the market is beginning to respond.
Let’s break down what’s happening.
Prices Are Moderating
Over the past few years, home prices climbed fast — sometimes so fast it priced many buyers out. But today, that pace has significantly slowed down.
For comparison:
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From 2020 to 2021, prices rose by roughly 20% in a single year.
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In 2025, experts project single-digit growth nationally — a much more balanced pace.
That’s a major shift from the rapid surge we saw during the pandemic market. And while trends still vary by region, most areas are now seeing stable or gently rising prices, not the double-digit jumps of years past.
For buyers, this moderation means a chance to plan confidently, budget more effectively, and make offers without the same urgency or fear of missing out.
Mortgage Rates Are Easing
At the same time, mortgage rates have pulled back from their recent highs — another welcome sign for those who’ve been waiting to buy.
Lisa Sturtevant, Chief Economist at Bright MLS, explains:
“Slower price growth coupled with a slight drop in mortgage rates will improve affordability and create a window for some buyers to get into the market.”
Even a small dip in rates can make a big difference in your monthly payment. And while volatility is still expected, forecasts suggest rates will remain in the low to mid-6% range heading into 2026 — a noticeable improvement from the 7%+ highs seen earlier this year.
If broader economic trends continue in the right direction, rates could even edge lower.
Why This Matters for Buyers
Confidence in the economy might still feel shaky, but the housing market itself is adjusting in meaningful ways. With prices stabilizing and rates easing, buyers have more breathing room than they’ve had in years.
No, affordability challenges haven’t vanished overnight — but for many, the conditions are becoming more workable. If you paused your home search earlier this year, now may be a good time to revisit your options.
Bottom Line
Both of the top concerns for buyers — prices and rates — are seeing real improvement. Those trends are expected to continue into 2026, creating a window of opportunity for those ready to make their move.
If you’re thinking about buying a home, connect with The Ace Estate Team today to explore what these market shifts mean for your goals and what’s possible in your local area.