Buying a home has felt out of reach for many Americans in recent years, but experts say 2026 could bring some relief.
Mortgage rates have already started trending down from recent highs, and one analyst predicts they may continue falling, potentially bringing more buyers back into the market.
For some first-time buyers, the dream of home ownership is still just a goal.
“I think part of the American dream, and part of what we strive for, is to say that we have something to call our own,” Matt Nawrocki, a consumer in Scottsdale, Arizona, said.
Nawrocki feels buyers are still hesitant.
“Even with the interest rates having dropped a little bit, there's some uncertainty in the economy right now. So folks aren't as eager or as willing to rush out to buy their first home,” he said.
Ted Rossman, a senior financial analyst at Bankrate, says mortgage rates could keep moving lower throughout 2026.
“Right now, the average 30-year fixed rate is 6.25%,” Rossman said. “A year ago, it was around 7%. A couple of years ago, it was around 8% — we actually briefly hit 8% a little over two years ago. That was the first time in decades.”
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“So we're moving in the right direction,” Rossman added. “I do believe that the average 30-year fixed will fall below 6% this year, probably sooner rather than later.”
He says dropping below 6% could make a significant difference for monthly payments.
“That could easily save the typical borrower $200 or $300 a month, compared to when rates were in the sevens,” Rossman said.
Rossman also notes home prices may be leveling off in some markets compared to the steep increases seen in past years.
“If you're looking to enter the market, at least, we're no longer seeing super high mortgage rates, and we're no longer seeing astronomical jumps in home values,” he said.
President Trump has floated multiple ideas aimed at housing affordability, including banning institutional investors from buying single-family homes and having the federal government buy mortgage bonds in an effort to push rates lower.
In the past, the President has also suggested extending the 30-year mortgage to 50 years to lower monthly payments.
Rossman says it is unclear how much those proposals could impact housing costs long-term.
“The solution seems to be that we need more building and we need more inventory,” Rossman said.
For buyers like Nawrocki, even falling rates wouldn’t make the decision simple. He urges others to remain cautious and realistic.
“Be patient. Don't feel that you have to jump on the very first thing you see,” Nawrocki said. “You need to make sure you're looking at it from the perspective of, can I truly afford the payments, and does it truly make sense.”
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