What to Expect in the Housing Market for the Rest of the Year

Between rising home prices and unpredictable mortgage rates, many buyers and sellers are asking the same question: What’s coming next? If you’re looking for clarity, your best source is the experts.

Top real estate analysts are now sharing their forecasts for the remainder of the year—and the outlook might be more encouraging than you think. According to Business Insider:

“With mortgage rates expected to decline, affordability could improve modestly. A rise in inventory may also ease price growth, making it a bit easier for buyers to find the right home.”

So, what does that mean for you? Let’s take a closer look.

1. Mortgage Rates Are Expected to Ease (Just a Bit)

No one’s predicting a dramatic drop, but most projections suggest rates will slowly tick down as the economy stabilizes. Here's what current expert models indicate for where mortgage rates could land by the end of the year:

Even a small dip in mortgage rates can be a big relief. A modest decline may not seem like much at first glance, but it could lower your monthly payments and give your budget a little extra breathing room.

That said, factors like inflation, job growth, and broader economic trends will continue to influence what happens next. Trying to perfectly time the market? That’s risky business. Expect some bumps along the way.

2. Housing Inventory Is on the Rise

We’ve already seen a noticeable boost in available homes this year. A big driver behind that trend? Homeowners who’ve been holding off are realizing they can’t sit still forever. Many waited for rates to drop, but life keeps moving—and so do people. That’s why more listings are popping up, and experts believe that trend will continue.

As Lance Lambert, Co-founder of ResiClub, notes:

“Inventory increasing year-over-year strongly points to the likelihood that active listings nationwide will finish the year even higher.”

And if mortgage rates do ease further, it may encourage even more sellers to jump back into the market—giving buyers more homes to choose from.

3. Home Prices Are Rising, But More Slowly

With inventory climbing, price pressures are starting to ease. Forecasts still predict home values will increase this year, but not at the fast pace we’ve seen in recent years. Instead, we’re looking at steadier, more moderate growth.

Across seven major expert projections, the consensus points to an average home price increase of around 2% by year’s end.

That means a bit of relief may be on the horizon when it comes to rising home prices. When you pair the expectation for more moderate price growth with slightly lower mortgage rates, it could add up to increased buying power in the near future.

But remember—real estate is local. These trends will play out differently from one area to another. Some markets may continue to see prices climb, while others could experience slight price drops if inventory grows enough. That’s why it’s smart to connect with a local real estate expert who knows the market dynamics in your specific neighborhood.

Bottom Line

So, if a move is on your mind—or on your calendar—this year, take comfort in knowing that experts are forecasting a more favorable housing landscape ahead. With rates expected to ease slightly and inventory continuing to build, there could be opportunities worth exploring. Partnering with a knowledgeable local agent can help you navigate these shifts with confidence and make the most of conditions that could work in your favor.