Buyers vs. Sellers in 2026 — Navigating Rising Interest Rates

As we move into 2026, the real estate market is shifting, and one of the key drivers is rising interest rates. For both buyers and sellers, understanding how rates impact affordability, pricing, and competition can make a big difference.

For buyers, higher interest rates mean larger monthly mortgage payments for the same purchase price. That reduces buying power and may force you to either lower your desired price or wait for better conditions. While some forecasts suggest mortgage rates may begin to stabilize around the mid-6 % range in 2026, they are unlikely to drop back to the ultra-low levels seen a few years ago. This means buyers must be realistic: shop with a pre-approval, calculate true monthly payments including taxes and insurance, and focus on markets where inventory may give leverage.

For sellers, rising rates mean fewer qualified buyers in the pool. With reduced demand, homes may stay on the market longer, and sellers may need to be more flexible. On the other hand, if you’re in a low-supply market, you may still command good value—but you’ll need to emphasize quality, presentation, and price strategy.

In 2026, the balance of power may lean a bit more toward buyers than in recent years, though well-positioned sellers will still succeed. Regardless of which side you're on, your strategy must adapt: buyers benchmark affordability and leverage rate locks; sellers focus on timing, staging, and realistic pricing. By acknowledging the rate-driven dynamics, you’ll be better equipped to navigate the 2026 housing market.