NAR predicts the 2026 market
The National Association of REALTORS (NAR) forecasts that 2026 will be the comeback year for the housing market. Lawrence Yun, NAR chief economist predicts that 2026 will see a 14% nationwide home sale increase. Additionally the expects that new-home sales will rise 5%.
This prediction is supported by the market demand and lifestyle trends of potential buyers. Mortgage Bankers Association reported mortgage applications for home purchases surged 31% higher compared to a year ago. “Mortgage applications have been consistently above last year, implying that people’s desire to enter the market has been consistently positive,” said Yun. Throughout 2025 mortgage rates fluctuated even after Fed rate cuts, Yun expects for this to level out throughout 2026 and entice buyers.
“As we go into next year, the mortgage rate will be a little bit better,” said Yun. “It’s not going to be a big decline, but it will be a modest decline that will improve affordability.”