The real estate market this week continues to be defined by a gradual shift toward balance after several years of extreme conditions. Mortgage rates remain elevated, with the average 30-year fixed mortgage rate hovering around 6.5%, which continues to challenge affordability for many buyers. While borrowing costs remain a headwind, rates are still below the peaks seen in recent years, helping to sustain a moderate level of buyer activity. Recent data suggests that demand remains resilient, particularly among financially strong buyers who have adjusted to the higher-rate environment.
The ongoing war in Iran has created economic uncertainty, which has caused some buyers to pause their home search. Mortgage-originations data showed that approximately 581,000 home-purchase loans were issued during Q1 2026, down 19% from the previous quarter and 8% from a year earlier. High home prices and mortgage rates above 6% continued to limit buyer activity.
Prices remained relatively resilient despite slower sales. The median price of an existing home was around $404,600 in Q1 2026, while the median price of a new single-family home was approximately $403,200. Overall, the quarter was characterized by a market balancing between improving inventory and persistent affordability challenges. Sales volumes were below pre-pandemic averages, but rising supply and modest income growth helped prevent a sharper slowdown. Mortgage rates in the mid-6% range remained the primary factor constraining transactions.This is a sample paragraph inside of a container block. All blocks in a container block will be contained in the center of the screen. Blocks outside of a container block will be full-width. You can overwrite this message or remove this block and add another block here in its place.