The housing market is entering 2026 with renewed balance. While policy transitions and broader headlines may create background noise, the fundamentals—steady job growth, stable mortgage rates, and buyer engagement—are aligning to offer opportunity for both buyers and sellers. Here’s what you need to know this month.

Economic Shifts: Healthy Labor Market, Measured Growth

The U.S. economy continues to cool at a controlled pace. In January, 67,000 new jobs were added, and unemployment remained manageable at 4.4%. Wages have grown by 3.6% year-over-year, helping sustain buyer confidence. These steady conditions suggest the market is well positioned for a modest, stable year—offering a clearer runway for real estate decisions.

Federal Reserve: New Leadership, Familiar Strategy

As the Federal Reserve prepares for a leadership change later this spring, policymakers have held firm on rate policy. The benchmark rate remains at 3.75%, and no additional rate changes are expected until midyear. While transitions at the Fed can bring speculation, the current approach appears measured and designed to maintain broader financial stability.

Mortgage Rates: Stability Creates Confidence

Mortgage rates are holding steady, hovering just under 6%—near their lowest levels in over a year. This consistency offers an opportunity for both buyers and sellers: buyers can more confidently budget and secure financing, while sellers can list knowing rate-related buyer hesitancy has eased. Though rates remain higher than pre-pandemic lows, their predictability is a key advantage in today’s market.

Buyer & Seller Impact: Affordability Improving at the Margins

Buyers are responding to the combination of steady mortgage rates and slower home price growth. While affordability remains a concern, many are revisiting earlier plans and re-entering the market with the help of tools like rate locks, buydowns, and closing cost assistance. Sellers are adjusting to the new pace of demand and finding success by pricing strategically and offering well-prepared homes.

Agent Impact: Lead with Knowledge, Build with Confidence

For agents, this environment rewards strategy over speed. Clients are looking for guidance rooted in facts—not fear. Rate stability, clear Fed signals, and resilient employment provide a strong base to help both buyers and sellers move forward. Agents who combine educational insights with creative solutions will be well-positioned to support their clients through a more balanced 2026 market.