Where Top Economists Think the Housing Market Is Headed Next

The U.S. housing market has slowed since mortgage rates began rising in 2022, but positive changes could be coming. Experts predict that home sales may increase by 9% in 2025 and 13% in 2026 if job growth and lower mortgage rates help boost the market.

The Mortgage Bankers Association (MBA) expects slower economic growth in the coming years, projecting a slight decline from the 3.2% GDP growth seen in 2023. However, with mortgage rates anticipated to drop—possibly with up to four rate cuts in 2025—homebuyers may find more opportunities in the market.

Incoming President-elect Donald Trump’s economic plans could provide additional support for the housing market. Trump has called for lower interest rates to make borrowing more affordable, which could encourage more people to buy homes. His proposed tariffs on imports, aimed at strengthening American industry, may also drive up demand for U.S.-made goods and materials, supporting local businesses and workers.

While Trump’s commitment to tax cuts and economic growth may increase government borrowing, if his administration develops a solid plan to reduce the national deficit, it could create long-term economic stability and further help lower mortgage rates. Many are hopeful that these combined efforts will bring positive changes to the housing market in the years to come.