"Yes, lower mortgage rates in early 2026 are boosting U.S. housing demand, with strong increases observed in pending home sales and purchase applications. The average rate for a 30-year fixed mortgage is hovering around 6.09% as of January 22, 2026, a significant drop from the high rates seen in the past two years. Increased Buyer Activity: The lower rates have motivated many would-be buyers who were previously sidelined to re-enter the market, leading to a notable uptick in buyer interest and an increase in sales."
"Affordability Improves, But Challenges Remain: While the lower rates reduce monthly payments (a 1% drop can save hundreds per month), the overall affordability crisis persists as tight inventory keeps upward pressure on home prices. Home prices are expected to rise modestly, with forecasts generally in the 1% to 4% range for the year. Market Rebalancing: The market is shifting toward a more balanced environment between buyers and sellers, moving away from the extreme seller's market of the pandemic years."
Lower mortgage rates in early 2026, with the 30-year fixed near 6.09%, have spurred renewed U.S. housing demand and higher pending sales. Purchase mortgage applications rose 16% week over week and 13% year over year in the first week of 2026. Reduced rates improve monthly affordability — a 1% decline can save hundreds per month — but tight inventory keeps upward pressure on prices. Home prices are expected to rise modestly, roughly 1%–4% this year. Inventory is rising year over year, rebalancing the market with regional variation; Northeast and Midwest remain tighter while some Southern and Western markets cool. Boston condo sales may increase in 2026 as affordability improves slightly.
Read at Boston Condos For Sale Ford Realty
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