What are we watching in the housing market for the rest of 2026?
While no one can predict exactly what the months ahead will bring, there are a few national trends worth watching. Mortgage rates, home prices, and buyer activity all have the potential to shape the housing market during the second half of the year. Here’s what we’re watching and what it could mean if you’re thinking about buying or selling.
Mortgage Rates Could Be Near a Turning Point
If you’ve been waiting for mortgage rates to come down, you’re not alone. They’ve stayed higher than many buyers hoped throughout the first half of 2026, making affordability a challenge for many households.
One of the biggest reasons rates have remained elevated is inflation. Higher energy prices and ongoing uncertainty overseas have played a role in keeping inflation higher than expected. The encouraging news is that oil prices have already started moving lower.
That might not seem connected to real estate, but historically, mortgage rates and oil prices often move in the same direction. Both climbed earlier this year when global tensions increased. While there’s still been some ups and downs, experts with the U.S. Energy Information Administration (EIA) expect oil prices to continue easing.
If energy prices continue to decline, inflation cools, and global conditions stabilize, mortgage rates could follow. No one knows exactly when that might happen or how much rates could change, but it’s one of the biggest indicators we’re watching for the rest of the year.
It’s also worth remembering that these are national trends. Every local market is different, and national forecasts don’t always play out the same way here in the Greenbrier Valley.
National Forecasts Still Call for Home Prices To Rise
Many buyers are still hoping home prices will come down, but that’s not what most national forecasts are showing.
While some markets are seeing modest price declines, experts continue to project overall home prices will finish the year higher. On average, forecasts call for home prices to increase 2.3% in 2026.
Current data from the Federal Housing Finance Agency (FHFA) shows home prices are already up about 1.7% year over year nationwide. To reach that projected 2.3% increase, price growth would need to pick up modestly during the second half of the year.
One reason that could happen is inventory. While more homes have come on the market this year, that growth appears to be slowing. If mortgage rates improve and more buyers return, increased competition could put modest upward pressure on prices.
That doesn’t necessarily mean every market will see the same results. Real estate has always been local. But these national forecasts are a reminder that waiting doesn’t automatically mean homes will become less expensive.
For sellers, it’s another encouraging sign that home values are expected to remain relatively stable nationwide.
More Buyers Could Return to the Market
If the housing market has felt quieter this year, you’re not imagining it.
Home sales have been slower than many economists expected. That doesn’t mean people have stopped wanting to move. In many cases, they’ve simply been waiting for better affordability, lower mortgage rates, or a little more confidence before making a decision.
As Odeta Kushi, Deputy Chief Economist at First American, explains:
“Overall, we expect pent-up demand to continue emerging gradually. But the pace of recovery will vary significantly across markets and will depend on the path of rates, labor market conditions and inventory growth.”
Current forecasts suggest the second half of 2026 would need to outperform the first half of the year in order to meet projected annual home sales. In fact, each remaining month would need to come close to matching May, which has been the strongest sales month so far this year.
If those forecasts prove accurate, it would point to more buyers and sellers re-entering the market as the year continues.
What This Means for You
The rest of 2026 may bring more momentum than we’ve seen so far this year, but there’s still plenty of uncertainty ahead.
National forecasts suggest:
- Mortgage rates could improve if inflation continues to cool.
- Home prices are still expected to finish the year higher, with an average projected increase of 2.3%.
- Home sales could pick up during the second half of the year as more buyers return to the market.
Here in the Greenbrier Valley, we’ll continue watching our local market closely because that’s what matters most when you’re making a real estate decision. National trends provide helpful context, but every community has its own story.
Whether you’re thinking about buying, selling, or simply trying to understand what’s happening in today’s market, we’re always happy to talk through your options and share what we’re seeing here at home.
Byron Rausenberger & Kerry Baldwin | REALTORS® | Lewisburg, WV Real Estate Experts
Byron Rausenberger and Kerry Baldwin are full-time REALTORS® with Grist Real Estate Associates, serving Lewisburg, WV, and the greater Greenbrier Valley, including Greenbrier, Monroe, Summers, and Pocahontas Counties.
They specialize in residential homes, land, farms, commercial properties, and luxury retreats throughout Southern West Virginia. Known for strong negotiation, strategic marketing, and clear communication, they guide buyers and sellers through every step of the process with confidence and precision.
For those searching for the best real estate agents in Lewisburg, WV, relocating to West Virginia, or exploring homes with acreage in the Greenbrier Valley, Byron and Kerry provide trusted local expertise rooted in deep community involvement and market knowledge.
They maintain 100% five-star reviews on Realtor.com, reflecting consistent client satisfaction and a commitment to professional, results-driven service.
From first-time buyers to experienced investors, their focus is simple: help clients make smart real estate decisions that align with their goals and lifestyle.
📍 Based in Lewisburg, WV
🧭 Lewisburg WV real estate • Living in Lewisburg WV • Moving to Lewisburg WV • Greenbrier Valley homes
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The information shared here is for educational purposes only and reflects local market conditions at the time of writing. It should not be considered financial or investment advice. For guidance specific to your situation or local market, contact Byron and Kerry directly. They’re always happy to help you understand what it means for you.
See what we’re watching in the housing market for the rest of 2026, including mortgage rates, home prices, and buyer activity.
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