The Berkshire Hathaway U.S. Real Estate Market Forecast highlights the uncertainty in the housing market influenced by world events and financial market fluctuations. The report discusses the impact of mortgage rate changes for 2026 and the potential relief for homebuyers in the coming years.
Key takeaways
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Mortgage rates have been fluctuating, with a decrease noted in the second quarter of 2025, followed by an increase in mid-May. Experts suggest that significant relief in rates may not be seen until 2026 or beyond.
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The Federal Reserve’s decision to maintain interest rates between 4.25% to 4.5% has led to a recent fall in mortgage rates. Forecasts indicate a cautious optimism for further rate easing in 2026.
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Various projections from Fannie Mae, the National Association of Home Builders, and the Mortgage Bankers Association suggest that average mortgage rates will hover around the mid-6% range through 2025, with potential dips below 6% expected by late 2026.
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Home inventory levels have increased, with new home sales declining by 13.7% in May. The rising inventory represents a 9.8-month supply, prompting builders to reduce prices.
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The pace of home sales has slowed, with properties spending an average of 58 days on the market in July. Price reductions were observed in 20.6% of listings, indicating a shift in the market towards buyer-favorable conditions.
This summary has been generated with AI tools and edited by Realtor.com News & Insights editors. The full story, written and edited by Realtor.com News & Insights newsroom journalists, is linked at the top of the summary.
