"We are heading into a shift, said Shannon Herrmann, a Montana-based LO. We've hit our bottom for housing stagnation and will see a steady increase in home sales and a decrease in mortgage rates by the third quarter of 2026. Move-up buyers are expected to benefit most, with 39% of lenders surveyed predicting that this group will have the strongest outcomes in the coming year."
"Rising personal debt is prompting some prospective buyers to test out co-buying or nontraditional arrangements. Friends, family members, or investors are teaming up to purchase a home together, Herrmann said. Non-occupying co-borrowers and gifts from relatives are also becoming more common. But as homeownership becomes increasingly out of reach, HomeLight's survey found that some buyers are turning to online lenders or unlicensed sales agents, often resulting in poor financial decisions."
"Lower rates [will] motivate buyers who were on the fence to purchase their first home, said Dennis Bergstrom, a loan officer with more than 20 years of experience. Home equity will continue to be used for debt consolidation, while AI tools are expected to streamline the mortgage application process. Half of lenders surveyed believe AI will improve efficiency for borrowers and loan officers alike."
Housing stagnation has bottomed and home sales are expected to steadily increase as mortgage rates decline by the third quarter of 2026. Move-up buyers are projected to see the strongest outcomes, with 39% of lenders predicting favorable results. First-time buyers are likely to remain sidelined due to high prices and difficulty saving for down payments. Rising personal debt is prompting co-buying and other nontraditional arrangements, including non-occupying co-borrowers and gifts from relatives. Some buyers are turning to online lenders or unlicensed agents, increasing financial risk. Lower rates, AI tools, and buy-before-you-sell programs are expected to drive future activity.
#housing-market-outlook #mortgage-rates #co-buying-and-alternative-financing #ai-in-mortgage-processing
Read at www.housingwire.com
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