If the first half of this year has left you feeling stuck, you're certainly not alone. Mortgage rates remained higher than many buyers hoped, affordability stayed tight, and uncertainty around the world added another layer of hesitation.

That has many people asking the same question: Will the second half of 2026 be any better?

While no one can predict the future with certainty, several encouraging trends suggest the housing market could gain momentum during the months ahead.

Mortgage Rates Could Be Near a Turning Point

One of the biggest reasons mortgage rates have stayed elevated is inflation. Higher energy costs and ongoing global uncertainty have contributed to keeping inflation stubbornly high.

The encouraging news is that oil prices have already started moving lower. Historically, mortgage rates and oil prices often move in the same direction. If energy prices continue to fall, inflation cools, and overseas tensions ease, mortgage rates may begin trending downward during the second half of the year.

While it's impossible to predict exactly when rates will improve—or by how much— many economists believe the conditions are beginning to line up for lower borrowing costs.

For buyers who have patiently waited on the sidelines, the second half of 2026 could finally offer new opportunities.

Home Prices Could Pick Back Up

Many buyers continue hoping home prices will decline significantly. However, that's not what most national forecasts currently predict.

Although every local market behaves differently—and some areas are experiencing small price corrections— economists still expect home values nationwide to finish the year higher than they began. Current projections call for approximately 2.3% appreciation during 2026.

Current Federal Housing Finance Agency (FHFA) data shows prices are already up roughly 1.7% year-over-year nationally. To reach the projected annual gain, price appreciation would simply need to strengthen modestly throughout the remainder of the year.

Why could that happen?

• Inventory has increased, but growth appears to be slowing.
• If mortgage rates improve, more buyers could return to the market.
• More buyer competition typically creates modest upward pressure on home prices.

For buyers, waiting may not necessarily mean paying less later. For homeowners considering selling, this is welcome news for protecting home equity.

More Homes Are Expected to Sell

The housing market has felt noticeably quieter throughout much of 2026. That doesn't mean people no longer want to move—it simply means many have been waiting for better affordability, lower rates, or greater confidence.

As those conditions begin improving, economists believe demand could gradually return.

Forecasts suggest that for 2026 home sales to meet expectations, the second half of the year would need to outperform the first. Several experts believe that's exactly what could happen if mortgage rates continue easing.

Each remaining month would need to approach the sales pace seen during May—the strongest month so far this year. That outlook reflects growing optimism that housing activity will accelerate through the remainder of 2026.

Bottom Line