The housing market in March 2026 is slowly becoming a little better for buyers, especially in terms of affordability, but the change is happening very slowly and many people may not feel a big difference yet. Experts say the improvement in affordability can be proven with data, but it may not yet be strong enough to change many buyers’ or sellers’ decisions right now.
March is usually the time when people start planning seriously to buy homes before the busy summer home-buying season begins. Jim Breeze, senior vice president at PNC Bank, said the housing market in March 2026 will likely look similar to last year, but possibly a little better. Breeze explained that the mortgage market usually follows a seasonal pattern every year. According to PNC Bank data, mortgage applications increased by about 47% between January and April last year, as cited by Yahoo Finance.
Breeze also advised buyers to talk to a mortgage advisor before they even start looking for houses. He said this early conversation can help buyers learn about different financial options that could make a home more affordable. For example, there are many down payment assistance programs that some buyers do not know about. Breeze explained that these programs can sometimes make it easier for people to afford their dream home if they get the right advice early.
Just a little over a year ago, mortgage rates were above 7%, making homes much more expensive to finance. Experts say if mortgage rates stay stable in March or drop a little more, both home buying and refinancing activity could increase. Realtor.com economist Jiayi Xu said mortgage rates staying near 6% could be an important turning point in the housing market. Xu explained that the housing market is finally crossing the psychological barrier of mortgage rates being in the 5% range again.
But this situation can also make some sellers hesitate to list their homes because they might wait for better prices in the future. Thom Malone, principal economist at Cotality, said 2025 marked the end of a very unusual period of fast home price growth. Home prices had grown strongly for five straight years, including a huge 19% peak growth in 2021. However, price growth dropped sharply to only 1.3% in 2025.
Khan said buyers may still be able to negotiate something from sellers. These concessions could include a lower price, help with closing costs, or money for home repairs. Housing supply is also an important factor in the market. Redfin reported that as of February 22, 2025, there was about a 5.1-month supply of homes for sale. Experts say 4 to 5 months of housing supply is considered a balanced market between buyers and sellers. When supply is lower than that range, the market usually favors sellers.
Even with new construction happening, the US housing market still has a large shortage of homes, as per Yahoo Finance citing Realtor.com. Realtor.com’s Housing Supply Gap Report found the housing shortage grew by more than 4 million homes in 2025. Danielle Hale, chief economist at Realtor.com, said the housing market is still trying to recover from more than a decade of underbuilding homes.
That is eight days longer than before, and the longest selling time seen in nearly seven years. Getting a mortgage is also slowly becoming easier compared with previous years. The Mortgage Bankers Association tracks mortgage access through something called a credit availability index. This index reached its lowest level in November 2023, meaning it was very hard to qualify for loans at that time. Since then, the index has been slowly rising, which means lenders are gradually loosening their credit rules.
Joel Kan, deputy chief economist at the Mortgage Bankers Association, said lenders usually prepare for the spring home-buying season at the start of the year. Kan added that recent drops in mortgage rates have also created new opportunities for homeowners to refinance their loans. Some homeowners are also refinancing into adjustable-rate mortgage (ARM) loans because of the lower rates. Overall, the March 2026 housing market shows slow improvement in affordability, slightly lower mortgage rates, slower price growth, and longer selling times, but experts say the market is still adjusting and major changes may take more time, as stated by Yahoo Finance report.
March is when many buyers start planning for summer moves, and slightly lower mortgage rates and better affordability may create more opportunities for buyers.
Q2. Why are mortgage rates important for home buyers in 2026?
Lower mortgage rates reduce monthly payments, which can make homes more affordable and encourage more people to buy or refinance.
March is usually the time when people start planning seriously to buy homes before the busy summer home-buying season begins. Jim Breeze, senior vice president at PNC Bank, said the housing market in March 2026 will likely look similar to last year, but possibly a little better. Breeze explained that the mortgage market usually follows a seasonal pattern every year. According to PNC Bank data, mortgage applications increased by about 47% between January and April last year, as cited by Yahoo Finance.
Spring home buying season starts
The first big increase usually starts in March. For example, applications in March 2025 were 38% higher than in January 2025. Breeze said the months November, December, and January are usually slow for home buying because people are busy with holidays and winter plans. After those slow months, people start thinking about moving homes during the summer, so they begin planning and applying for mortgages around March.Breeze also advised buyers to talk to a mortgage advisor before they even start looking for houses. He said this early conversation can help buyers learn about different financial options that could make a home more affordable. For example, there are many down payment assistance programs that some buyers do not know about. Breeze explained that these programs can sometimes make it easier for people to afford their dream home if they get the right advice early.
Home affordability slowly improving
Another positive sign in the housing market is that home affordability has improved slightly over the past year. A new analysis by Zillow found that affordability has improved by more than $30,000 compared with last year, as stated by Yahoo Finance. This improvement is mainly happening because people’s incomes are rising and mortgage rates are falling. Because of these changes, a household earning the median income can now afford a home priced around $331,483.Mortgage rates going down
Zillow said this is the highest affordable home price level since March 2022. Mortgage rates are also improving and are now at levels not seen since September 2022. Mortgage rates started slowly going down around mid-November last year. Some lenders are now offering loan rates below 6%, which is much lower than last year. Yahoo Finance’s weekly lender survey showed 30-year fixed mortgage rates as low as 5.5%.Just a little over a year ago, mortgage rates were above 7%, making homes much more expensive to finance. Experts say if mortgage rates stay stable in March or drop a little more, both home buying and refinancing activity could increase. Realtor.com economist Jiayi Xu said mortgage rates staying near 6% could be an important turning point in the housing market. Xu explained that the housing market is finally crossing the psychological barrier of mortgage rates being in the 5% range again.
Home price growth slowing down
Lower mortgage rates may also encourage some homeowners who were previously “locked in” to their old low rates to start selling their homes again. At the same time, the growth of home prices is slowing down. Data from the S&P Cotality Case-Shiller Index shows that housing price growth is now at its slowest level since the market recovered after the Great Recession, as per S&P Cotality Case-Shiller Index cited by Yahoo Finance. Slower price growth can be good for buyers because homes are not becoming expensive as quickly as before.But this situation can also make some sellers hesitate to list their homes because they might wait for better prices in the future. Thom Malone, principal economist at Cotality, said 2025 marked the end of a very unusual period of fast home price growth. Home prices had grown strongly for five straight years, including a huge 19% peak growth in 2021. However, price growth dropped sharply to only 1.3% in 2025.
Buyers getting discounts on homes
Malone said the housing market is now waiting for the broader economy to catch up with housing prices. He also expects home prices to grow only slightly in 2026. Another trend helping buyers is that many buyers last year were able to negotiate lower prices than the listing price. In 2025, about 62.2% of home buyers received a discount off the original list price. The typical discount was around 7.9%, which is the biggest average price cut since 2012. Redfin senior economist Asad Khan said buyers in 2026 should not ignore homes that are slightly above their budget.Khan said buyers may still be able to negotiate something from sellers. These concessions could include a lower price, help with closing costs, or money for home repairs. Housing supply is also an important factor in the market. Redfin reported that as of February 22, 2025, there was about a 5.1-month supply of homes for sale. Experts say 4 to 5 months of housing supply is considered a balanced market between buyers and sellers. When supply is lower than that range, the market usually favors sellers.
Even with new construction happening, the US housing market still has a large shortage of homes, as per Yahoo Finance citing Realtor.com. Realtor.com’s Housing Supply Gap Report found the housing shortage grew by more than 4 million homes in 2025. Danielle Hale, chief economist at Realtor.com, said the housing market is still trying to recover from more than a decade of underbuilding homes.
Housing supply still very low
Even if construction and household formation become balanced each year, the housing market still needs many more homes to close the supply gap. Meanwhile, the number of new homes listed for sale is slightly decreasing. Redfin reported 80,595 new listings, which is 2.8% lower than last year. Homes are also staying on the market longer before being sold. The median time for a home to sell is now 67 days, according to Redfin.That is eight days longer than before, and the longest selling time seen in nearly seven years. Getting a mortgage is also slowly becoming easier compared with previous years. The Mortgage Bankers Association tracks mortgage access through something called a credit availability index. This index reached its lowest level in November 2023, meaning it was very hard to qualify for loans at that time. Since then, the index has been slowly rising, which means lenders are gradually loosening their credit rules.
Joel Kan, deputy chief economist at the Mortgage Bankers Association, said lenders usually prepare for the spring home-buying season at the start of the year. Kan added that recent drops in mortgage rates have also created new opportunities for homeowners to refinance their loans. Some homeowners are also refinancing into adjustable-rate mortgage (ARM) loans because of the lower rates. Overall, the March 2026 housing market shows slow improvement in affordability, slightly lower mortgage rates, slower price growth, and longer selling times, but experts say the market is still adjusting and major changes may take more time, as stated by Yahoo Finance report.
FAQs
Q1. Is March 2026 a good time to buy a house?March is when many buyers start planning for summer moves, and slightly lower mortgage rates and better affordability may create more opportunities for buyers.
Q2. Why are mortgage rates important for home buyers in 2026?
Lower mortgage rates reduce monthly payments, which can make homes more affordable and encourage more people to buy or refinance.
