H
omeownership remains out of reach for many Americans due to high home prices and mortgage rates hovering near 7%. According to Realtor.com's June 2025 report, the total number of unsold homes, including those under contract, increased by 20% compared to last year.

    Economists with the National Association of Realtors (NAR) estimate that a 30-year fixed-rate mortgage of 6% would make the median-priced home affordable for about 5.5 million more households, including 1.6 million renters. However, only around 10% of these additional households are likely to buy a home over the next year or so.

    Real estate agents report that clients are hesitant to buy due to high mortgage rates and fear of making a bad decision. Buyer activity is suppressed, leading to increased inventory and forcing sellers to be more flexible on price. NAR forecasters predict that if mortgage rates drop to 6% by 2026, home sales will increase by 14%.

    Certain cities, such as Atlanta, Dallas, Minneapolis, Cleveland, and Kansas City, would benefit from a rate drop, with the largest uptick in home sales expected in these markets. If mortgage rates hit 6%, about 550,000 additional households are likely to buy a home over the next year or so.

    NAR economists warn that buyers waiting for lower mortgage rates might be missing out on opportunities and rising housing inventories. Home prices have slowed but still rise, with NAR predicting a 1% increase this year and 4% in 2026. Homeowners are gaining financial security through real estate, with low delinquency and foreclosure rates.

    However, whether it's the right time to buy depends on individual circumstances. Experts advise entering the market with a realistic strategy that prioritizes peace of mind. Mortgage rates have been rising for two consecutive weeks, with the average 30-year fixed rate now at 6.75%. This has led to a decline in home loan demand and uncertainty over President Trump's tariffs affecting the economy.