What will happen to home prices if mortgage rates stay high this year? Experts weigh in
Summary
Mortgage rates have stayed high around 6.5% this year, which is affecting home prices. Experts say if rates remain high, home prices may slowly drop because fewer people will want to buy, but if rates go down, prices could rise again as more buyers enter the market.Key Facts
- The average 30-year fixed mortgage rate has hovered near 6.5% in 2026.
- Home listing prices fell 2.4% nationwide in May compared to last year.
- Prices are dropping in 41 of the 50 largest U.S. metropolitan areas.
- High mortgage rates reduce buyer demand, which could lead to more houses for sale and lower prices.
- If rates drop, more buyers might return, causing prices to stabilize or increase.
- Experts do not expect mortgage rates to fall soon due to inflation and economic factors.
- Waiting for rates to fall might mean higher home prices later because of increased buyer competition.
- Some advise buying now and refinancing later if rates decline to lock in current prices.
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