Are Home Prices Rising Again?

Yes — home prices appear to be rising again in many markets, though the pace varies by location. Recent housing data shows national home price appreciation around 1.3% year-over-year, but when looking at recent months the trend is stronger.

If the most recent three to four months of price growth were annualized, home price appreciation would be closer to 4.6%–5.3% per year.

Mortgage rates are the primary factor driving this shift. When rates rose above 7%, demand slowed and prices softened. As rates moved back toward the 6% range, demand improved and prices began rising again.

In other words, the housing market did not crash — it paused and adjusted, and many experts expect gradual appreciation to continue if rates fall further.

What Caused Home Prices to Slow Down?

Over the past several years, the housing market has experienced significant volatility. The pandemic created historic demand, record-low mortgage rates, and rapid home price growth.

Then several factors cooled the market:

Key factors that slowed price growth

• Mortgage rates climbing above 7%

• Lower buyer participation

• Increased housing inventory in some markets

• Economic uncertainty

• Media speculation about a housing crash

Despite these concerns, the data shows that most markets experienced moderate slowing rather than a major correction.

Mortgage Rates: The Biggest Driver of Home Prices

Mortgage rates are the single most important factor influencing home price movement.

When rates increase:

• Monthly payments rise

• Buyer demand falls

• Price growth slows

When rates decrease:

• Payments become more affordable

• Buyer demand increases

• Home prices typically rise

Recent forecasts suggest mortgage rates could stabilize around 6% in the near term, with some economists predicting mid-5% rates later in the year.

If that happens, the housing market could see stronger appreciation again.

Recent Home Price Data Explained

National housing data from the Case-Shiller Home Price Index shows modest appreciation when looking year-over-year.

However, when breaking the data down month-by-month, a different trend appears.

Recent appreciation trends

• Annual appreciation (headline): 1.3%

• Last 4 months annualized: 4.6%

• Last 3 months annualized: 5.3%

Why the difference?

The year-over-year number includes months when mortgage rates were near 7% or higher, which slowed demand.

As rates declined, prices began climbing again.

Is the Housing Market Healthy?

Another important question is whether homeowners are facing financial stress similar to the 2008 housing crash.

The current data suggests the opposite.

Key housing market health indicators

Homeowners underwater

• Only 2.1% of homeowners owe more than their home is worth.

For comparison:

• In 2009, about 23% of homeowners were underwater.

That’s a massive difference.

Foreclosure rates

Mortgage delinquencies remain historically low.

Current numbers show:

• 30-day late payments: about 3.85%

• 90-day delinquency: under 1%

The 90-day delinquency rate is the most important indicator of financial distress, and right now it remains extremely low compared to historical averages.

Why the Housing Market Is More Stable Today

One reason the housing market is resilient today is homeowner equity.

Millions of homeowners purchased or refinanced during the ultra-low interest rate period between 2020 and 2022.

That means:

• Many borrowers have sub-4% mortgage rates

• Homeowners have built significant equity

• Few homeowners are forced to sell

Because of this, the housing market is much more stable than during previous downturns.

Local Market Example: Florida Housing Trends

Housing markets behave differently depending on location.

Florida is one of the most active real estate markets in the country, but it has also seen more inventory growth than many other states.

Some Florida cities have experienced modest appreciation, while others have seen price adjustments since the 2022 peak.

Examples include:

• Miami: still slightly above 2022 pricing

• Orlando: modest appreciation

• Some Southwest Florida areas: corrections after pandemic price spikes

Even with these adjustments, the overall market remains stable due to strong population growth and demand.

Mortgage Programs Helping Buyers Right Now

Many buyers are surprised to learn that financing options have improved significantly.

Creative mortgage solutions are helping buyers afford homes even with higher rates.

Popular programs in 2026

• Rate buydowns

• Seller paid closing costs

• FHA loans

• VA loans

• First-time buyer programs

• Bank statement loans for self-employed buyers

These strategies allow many buyers to secure mortgage rates well below market averages.

FAQ: Housing Market & Mortgage Questions

Are home prices rising again in 2026?

Yes. Recent housing data suggests prices are increasing again, especially as mortgage rates stabilize near 6%.

Will home prices crash like 2008?

Current data does not support this scenario. Foreclosures, delinquencies, and underwater mortgages remain historically low.

What mortgage rates are expected in 2026?

Many economists expect mortgage rates between 5.5% and 6%, depending on inflation and Federal Reserve policy.

Is now a good time to buy a home?

For many buyers, current conditions offer opportunities through seller concessions, rate buydowns, and expanded loan programs.

Why do mortgage rates affect home prices?

Lower rates increase affordability, bringing more buyers into the market and pushing prices upward.

Talk With a Mortgage Expert

If you're exploring mortgage options or wondering what loan programs you qualify for, Rayce Robinson and his team can help.

With more than two decades of experience, they help buyers navigate financing strategies that fit their situation.

📞 Call or Text: (321) 377-4211
💻 GET STARTED NOW

About Your Favorite Florida Mortgage Broker

Rayce Robinson is a Florida mortgage broker and founder of Mid Florida Mortgage Professionals. With more than 22 years of experience in the mortgage industry, Rayce helps homebuyers, investors, and real estate professionals navigate the complexities of financing.

His expertise includes:

• Conventional mortgages

• FHA and VA loans

• Investor financing

• DSCR loans

• Mortgage strategy and market analysis

Rayce regularly publishes housing market updates and mortgage education resources to help buyers make informed decisions.

Learn more about Rayce here