After years of high mortgage rates and cautious buyers, the housing market is starting to pick up quietly. Sellers are coming back, buyers are getting interested again, and for the first time in what feels like a long time, things are moving once more.

It’s not exactly a surge, but there is definitely a shift happening—and it could pave the way for a stronger 2026.

What’s really powering the comeback? Let’s look at three key trends that are starting to revive the housing market today.

1. Mortgage Rates Have Been Coming Down

Mortgage rates naturally go up and down—that's just part of the process. With the current economic uncertainty, some fluctuations are normal. But when you step back and look at the bigger picture, it’s the overall trend that counts the most.

Overall, rates have been going down for most of this year (check out the graph below).

In just the past few months, we've experienced the best rates of 2025 so far. Sam Khater, Chief Economist at Freddie Mac, points this out clearly.

““On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”
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— Sam Khater, Chief Economist at Freddie Mac

Here’s why this matters to you: this change affects how much home you can comfortably afford. It lowers borrowing costs, which gives you more buying power. For example, with lower interest rates, your monthly payments decrease, allowing you to consider a higher-priced home or save more each month.

According to data from Redfin, if you have a $3,000 monthly budget, you can now afford a home that’s about $25,000 more expensive than what you could afford a year ago. That’s a significant change, and it’s one reason why we’re seeing more activity in the market right now.

2. More Homeowners Are Ready To Sell

For quite some time, a lot of homeowners chose to stay put because they didn’t want to lose their low mortgage rates. This “lock-in effect” kept the housing inventory pretty tight. While many are still holding steady, as rates start to come down, fewer homeowners feel stuck. Now, life changes are playing a bigger role in prompting people to move, which is gradually increasing the number of homes available on the market.

Data from Realtor.com reveals a significant increase in the number of homes for sale. What’s really striking is that the market is nearing inventory levels we haven’t seen in the last six years (check out the blue on the graph below).

The return to more typical inventory levels is great news. It means buyers now have more choices than they’ve seen in years, which is helping the market find a healthier balance.

 3. More Buyers Are Re-Entering the Market

It’s not only sellers who are active right now. Buyers are stepping up too, thanks to more choices and a bit more affordability. According to the Mortgage Bankers Association (MBA), purchase applications have increased compared to last year, showing that demand is picking up again (see graph below).

Experts believe this positive trend is likely to keep going. Economists from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) all expect home sales to grow moderately as we move into 2026.

This recovery won’t happen instantly or come as a sudden rush of activity. Instead, it marks the beginning of steady progress heading into 2026. And that’s something many people have been looking forward to.

 Bottom Line

After a few slower years, the market is finally picking up. Lower mortgage rates, an increase in available homes, and more active buyers all show that things are starting to gain real momentum.

How about we chat about what’s going on in our local market and explore ways you can take advantage of it in 2026?