For the first time in years, prospective homebuyers may finally catch a break in 2026. Easing mortgage rates and slower home-price growth are expected to nudge affordability in a slightly better direction.
Realtor.com’s latest forecast projects that the monthly payment on a median-priced home will edge down by 1.3% next year, marking the first annual decline since 2020.
Jake Krimmel, senior economist at Realtor.com, told FOX Business that a few key changes are helping move the needle.
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“We anticipate affordability will improve modestly, on average, in 2026. This results from our expectations of slightly lower interest rates, only modest increases in home prices and a more balanced market than in recent years,” Krimmel said.
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He said the shift is an important post-pandemic turning point for affordability, and noted that the outlook on affordability improves even further once income growth is taken into account.
“We expect the monthly mortgage payment on a median-priced home to come in at 29.3% of median income, down from 2025 and 2024, and the first time under the 30% threshold since 2022.”
Still, he cautioned that buyers shouldn’t expect a dramatic turnaround.
“We are hardly out of the woods on affordability, but are at least moving in the right direction,” he said.
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