National Mortgage Professional
The U.S. housing market has endured two of its toughest years in decades, but brighter days may be on the horizon, according to Lawrence Yun, chief economist for the National Association of REALTORS® (NAR).
Speaking at the “Residential Economic Issues & Trends Forum” during the NAR 2025 REALTORS® Legislative Meetings in Washington, D.C., Yun predicted a rebound in home sales beginning this year, even though high mortgage rates have continued to weigh on the market. Existing home sales are expected to rise 6% in 2025 and accelerate by 11% in 2026, Yun forecasted. Meanwhile, new-home sales should climb by 10% this year and 5% next year.
Median home prices will continue to rise, Yun predicted, and are projected to increase 3% in 2025 and 4% in 2026. Mortgage rates, which Yun called a “magic bullet” for the market — at least when they’re attractive to potential buyers — are forecasted to average 6.4% in the second half of 2025 and dip to 6.1% in 2026.