"The bailouts are coming! The bailouts are coming! Yes, housing's "no crash" crowd may be right about home pricing avoiding another steep tumble. Those gurus coudl be proven correct because of my can't-miss prediction for the 2026 housing market. The federal government will come to the "rescue" once again. With affordability ridiculously low for house hunters, you'll see numerous attempts this year to save housing from the usual free-market fix for a terribly overvalued market: falling prices."
"Ponder the current price pain by looking back at monthly payments and how they soared in recent years. My trusty spreadsheet combined monthly median prices, as calculated by Attom, and mortgage rates from Freddie Mac - assuming a 20% down payment. Nationally, the monthly payment in October was $2,251 for the $360,000 median-priced home. That's up just 2% in a year."
Federal government will intervene to prop up the housing market and prevent a steep price decline in 2026. Affordability is extremely low for prospective buyers, prompting policy and market attempts to avert price corrections. Median monthly mortgage payments rose to $2,251 nationally for a $360,000 median-priced home in October, up 2% year-over-year, 99% over five years, 154% over a decade, and 198% since 2010. California's median payment reached $4,597 for a $735,000 median-priced home with similar multi-year increases. Proposed supports include longer-term loans such as 50-year mortgages and agency actions that hold guaranteed loans to lower mortgage rates.
Read at The Mercury News
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