Summary

• The U.S. housing market is expected to deteriorate further in 2026, with no rebound in sight.
• Rising competition from new home builders, aggressive incentives, and historically high price-to-income ratios are pressuring existing home sellers.
• Affordability remains at record lows due to elevated mortgage rates, surging insurance, property taxes, and flat or declining rents.
• Foreclosures are projected to surge late in 2026 as FHA forbearance ends and delinquency rates remain high, compounding inventory challenges.
• The article below highlights four reasons that not only will the U.S. housing market not rebound in 2026, but will likely continue to deteriorate.
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The year began with high hopes that the housing market that has been moribund since mortgage rates started to move up sharply in 2022 after the 30-Year mortgage rate went below three percent in 2021

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