Between rising home prices, elevated mortgage rates, and relatively few homes for sale, the past several years have been especially challenging for potential homebuyers. But 2026 is beginning to look quite different.

While affordability is still a challenge, the housing landscape is gradually shifting in favor of buyers in 2026. Mortgage rates are slightly lower than one year ago and inventory is increasing, creating a more balanced market that may offer buyers more flexibility and more opportunities during the spring homebuying season.

At the same time, there’s more competition for homes as well—which means buyers who prepare ahead of time will be in the strongest position to succeed.

The Outlook is Bright

Mortgage rates remain one of the most important factors shaping this year’s housing market. After climbing above 7% in early 2025, the average rate for a 30-year fixed mortgage is expected to remain between 6% and 6.5%, with some housing analysts projecting rates below 6% by the end of the year.

Many housing economists also expect home prices to increase more slowly than wages, which will help buying become more affordable. In fact, a recent Zillow analysis found that home affordability has improved by more than $30,000 from one year ago due to the combination of rising incomes and falling mortgage rates.

Housing inventory is also beginning to recover. According to commentary from the National Association of Realtors (NAR), the number of homes available for sale has increased roughly 20% compared to a year ago, which means buyers have more options. The Realtor group projects home sales will increase 14% this year—but because there’s still a supply gap of over 4 million homes, competition among buyers will remain tight in many areas.

Smart Buyers Plan Ahead

Taken together, these trends suggest the 2026 housing market may offer more opportunities than buyers have seen in years. But even with conditions shifting to a buyer’s market, the most successful buyers are those who begin preparing well before they start touring homes.

The first step is taking a close look at your financial situation. Mortgage lenders evaluate several factors when determining whether you qualify for a loan, including your credit history, income stability, and debt. Reviewing your finances early gives you time to pay down credit card balances and improve your credit profile, so you’re in the best position for approval.

Understanding your budget is equally important. Rates aside, other costs—like property taxes and insurance—have significantly increased in recent years. This makes it vital to work with an experienced loan officer who can help you create a realistic monthly payment before you begin your home search.

Buyers should also learn about the range of mortgage programs that may be available based on their financial circumstances. For example, some programs allow for lower down payments, while others provide more flexibility for buyers with unique income situations, such as self-employed borrowers. A knowledgeable loan officer can help you identify programs that you might not have discovered on your own.

When You’re Ready to Buy

Once your finances are in order and you understand your budget, the next phase of the homebuying journey is obtaining a mortgage preapproval. A preapproval involves a lender reviewing your financial documentation and confirming how much you may be able to borrow. Having a preapproval in hand makes a significant difference when you’re ready to submit an offer on a home, since sellers are more likely to take your offer seriously.

Finally, choosing the right lender plays a crucial role in ensuring your home purchase goes smoothly. Right By You Mortgage offers a wide range of mortgage options, including a First-Time Homebuyer program that lets you finance up to 97% of your home purchase.

We also offer a unique on-time closing guarantee. If your closing does not occur as scheduled, both you and the home seller may receive a $500 payment, provided certain conditions are met. It is one more way the Right By You Mortgage team works to make the homebuying experience smoother and more predictable.

If you are considering buying in 2026, the loan experts at Right By You Mortgage are ready to guide you through each step of the process and close on your new home with confidence. To get started, Find a local mortgage loan officer or email us at inquiries@rightbyyoumortgage.com today.