Zillow predicts mortgage rates will remain above 6% in 2026, with no expectation of dipping below that threshold despite some easing. Borrowers saw relief in 2025, leading to improved affordability and a potential increase in buyers reentering the market. Zillow forecasts a 1.2% growth in U.S. home values for 2026, with fewer major markets experiencing annual price declines. The housing market is expected to stabilize, providing buyers with more breathing room and sellers with price stability. Single-family home construction starts are anticipated to be the slowest since 2019, with builders relying on incentives to keep inventory moving. Rents are becoming more affordable, with incomes rising faster than rent in many markets. New York City is an exception, expecting rent growth to accelerate. Overall, the market in 2026 will offer a more balanced landscape for buyers and sellers alike.

Read more at Yahoo Finance: Mortgage Rates Will Stay Above 6% in 2026, Zillow Predicts