In 2026, the housing market is expected to stabilize with lower mortgage rates and increased inventory. Start preparing early to boost your credit score and secure a favorable rate. Lenders are shifting towards a broader view of credit, offering opportunities for first-time buyers with nontraditional histories.

Before buying a home, take a home-buyer education course to understand the process. Consider your budget, compare mortgage lenders, and plan for ongoing costs. Start building a cushion for post-closing expenses. Don’t focus on saving 20% for a down payment—there are many low-down-payment programs available.

Experts advise against waiting for the “perfect” time to buy a home. Focus on personal and financial readiness, rather than market timing. Treat your home purchase as a long-term financial decision. Modestly lower mortgage rates and increased inventory in 2026 may benefit buyers, but financial readiness is key.

Economists expect the Fed to cut interest rates again in 2026, potentially leading to lower mortgage rates. Consider a rate lock strategy with your lender around Fed meeting dates. Mortgage rates for 15 and 30-year loans are currently in the 5% range. It’s a good time to secure a favorable rate.

Laura Grace Tarpley edited this article.

Read more at Yahoo Finance: Want to buy a house in early 2026? Here’s how to prepare.