Buyer Needs and Market Moves

A recent Bank of America survey asked would-be homebuyers what would make them feel more confident about moving forward. The answer was clear: they want improved affordability — specifically, lower prices and mortgage rates.

The good news? While the broader economy still feels uncertain, there are encouraging signs that both prices and rates are shifting in a more favorable direction. Here’s what’s happening.

Prices Are Moderating

Over the past few years, home prices rose quickly, often leaving buyers feeling priced out. From 2020 to 2021, prices jumped an incredible 20% in just one year. That rapid pace has since slowed. Today, experts project only modest, single-digit price growth nationally — a much healthier and more sustainable trend.

This is a big change from the breakneck appreciation we saw not long ago. Of course, price trends still vary by location. Some markets will see slight increases, while others may experience small declines.

While prices aren’t falling dramatically, this moderation makes homebuying feel more manageable. For buyers, a steadier market means it’s easier to budget and plan without worrying about prices soaring month after month.

Mortgage Rates Are Easing

Mortgage rates are also providing some relief. After peaking not long ago, rates have eased — and even a small decline can make a noticeable difference in monthly payments.

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.”

While rates are still expected to fluctuate, experts predict they’ll hover in the low-to-mid 6% range in the coming months — a welcome improvement from the highs seen earlier this year. Depending on how the economy evolves, there’s even potential for additional declines.

Why This Matters

Even with lingering economic uncertainty, these shifts suggest the housing market is adjusting to support buyers. Prices are stabilizing, rates are softening, and overall affordability is improving bit by bit.

This doesn’t mean all challenges have disappeared. Many buyers still face tough decisions and tight budgets. But it does mean conditions look different — and possibly more favorable — than they did not long ago. If you’ve been waiting for a better moment to start your home search, now might be the time to re-evaluate your options.

Bottom Line

Buyers have been asking for affordability — and the market is starting to respond. Prices are moderating. Rates are easing. Together, these changes are creating new opportunities for buyers who may have felt discouraged before.

As we look toward 2026, these trends could continue, helping more people move forward with confidence toward homeownership.

Submitted by Beach Team Realty https://www.mybeachteam.com/blog/