The Market’s Turning the Corner: What This Means Heading into 2026

After a few years of high mortgage rates and a whole lot of hesitation from buyers, we’re finally starting to feel some quiet momentum building in the housing market. Sellers are coming back. Buyers are poking their heads up again. And for the first time in what feels like forever… things are actually moving.

Is it a boom? No.
Is it a shift? Absolutely — and it’s the kind of shift that could set us up for a much healthier 2026.

So what’s behind the comeback? Here are the three trends slowly breathing life back into today’s market.

1. Mortgage Rates Are Finally Drifting Downward

Yes, rates will always bounce around — that’s just the nature of the economy. With everything going on right now, a little volatility is normal. But when you zoom out and look at the bigger picture, the trend that actually matters is this: rates have been easing down for most of the year.

And in the last few months, we’ve even hit some of the best rates of 2025. As Sam Khater, Chief Economist at Freddie Mac, explains:

“On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”

What does that mean for you? More buying power. Lower borrowing costs. A meaningful improvement in affordability.

Redfin’s data shows that a buyer with a $3,000 monthly budget can afford about $25,000 more home today than they could at this time last year. That’s a huge shift — and a big part of why more buyers are jumping back in.

2. More Homeowners Are Ready To Sell Again

For a long time, homeowners stayed put simply because they didn’t want to give up their super-low mortgage rates — the classic “lock-in effect.” And while that’s still true for many, we’re starting to see that grip loosen as rates fall.

Life changes are becoming a bigger motivation than interest rates, and that’s opening up inventory we haven’t seen in years.

Realtor.com’s data shows a noticeable jump in homes for sale, and inventory levels are edging closer to what we saw six years ago — a much more normal market.

More inventory means more choices for buyers and a healthier, more balanced market overall.

3. Buyers Are Stepping Back In

It’s not just sellers returning — buyers are, too. With slightly better affordability and more homes hitting the market, demand is picking back up.

The Mortgage Bankers Association reports that purchase applications are up compared to last year, which is a clear sign that buyers are re-engaging.

And economists across the board — from Fannie Mae to MBA to NAR — expect this momentum to continue with moderate sales growth heading into 2026.

No, this isn’t going to turn into a fast-moving frenzy overnight. But it is steady improvement. And after the slow years we’ve had, steady sounds pretty great.

Bottom Line

The market is finally turning a corner. With declining mortgage rates, more listings, and renewed buyer activity, we’re seeing real traction again.

If you're thinking about making a move in 2026, now is the time to start planning. Connect with us at Rucker + Associates so we can help you understand what’s changing — and how to take advantage of it.