Summary
The National Association of Realtors (NAR) has lowered its 2026 housing market forecast due to rising mortgage rates. These rates have climbed since a conflict in the Middle East and are expected to affect home sales and affordability. The NAR predicts lower growth in home sales volume and an increase in home prices.
Key Facts
- The NAR has revised its 2026 forecast, predicting a 4% increase in home sales, down from an initial 14%.
- New home sales are expected to remain mostly unchanged this year.
- Mortgage rates have risen above 6% following the conflict in the Middle East, impacting the housing market.
- Rising mortgage rates are affecting the pool of potential homebuyers.
- The average 30-year fixed mortgage rate was 6.37% as of early April.
- Existing home sales dropped by 3.6% in March compared to the previous month.
- Inventory constraints and lower consumer confidence continue to impact the housing market.
