What happened to mortgage rates this week
The Freddie Mac 30-year fixed mortgage rate fell 4 basis points to 6.19% this week as markets looked to upcoming economic data for signals ahead of next week’s Federal Reserve meeting. A December rate cut, which the market widely expects, could take further pressure off of mortgage rates as the year comes to a close, boosting buying power.
What it means for the housing market
More broadly, we expect 2026 to offer slightly more affordable housing conditions. While home prices are projected to rise 2.2%, average mortgage rates are likely to decline from 2025 levels, helping offset price gains and reduce monthly payments. Inflation is also expected to outpace home price growth, resulting in real increases in buying power. At the same time, inventory is projected to grow by nearly 9%, offering buyers more options than they have had in years.
Still, regional differences remain pronounced. The South and West continue to benefit from robust homebuilding, which has offered more for-sale supply and given buyers access to incentives that can help lower costs. In contrast, inventory in the Northeast and Midwest is expected to remain tight, and buyers in those regions may face competitive conditions.
Overall, the housing market is poised for a gradual improvement rather than a rapid turnaround. Easing mortgage rates and growing inventory should help buyers in 2026, even as affordability challenges persist.
