Market Spotlight #195 | Early 2026: Buyers Are Back

The early weeks of 2026 are telling a different story than many expected. Rather than sitting on the sidelines, buyers are coming back into the housing market. Purchase applications are up sharply from the prior week and more than 14% higher than last year. Pending sales are moving higher as well, confirming that this isn’t just window shopping—buyers are writing offers and going under contract.

Mortgage rates are helping. The average 30‑year fixed is holding near 6.1%, a full percentage point below last year’s levels. That improvement in mortgage rates, combined with still‑elevated inventory and common price reductions, is creating a unique form of winter leverage. Buyers have more homes to choose from, more room to negotiate, and less head‑to‑head competition than they typically face in the spring.

For home sellers, this means pricing and presentation are crucial. Buyers are informed and cautious; they’re willing to act, but only when the payment and property line up. For real estate agents and loan officers, this is the moment to re‑engage clients who paused in 2024 because of rate fatigue or lack of options. The message is simple: buyers are moving again, mortgage rates are lower, and the combination of higher inventory and softer winter pricing won’t last once spring demand ramps up. Acting early in the year can help clients capture both leverage and long‑term equity growth.