Happy New Year! I hope you have a prosperous and contented 2026. I understand that your world doesn’t revolve around mortgages like mine does, so hopefully you can find information in here pertinent to other areas of your life as well the financing of your most cherished asset.
The latest reports nationwide show that there are currently 37% more people selling their homes than there are people interested in buying homes. This buyer’s market has attenuated home prices nationwide from a 4.6% increase in 2024 to a 2.6% increase in 2025. And most forecasts for 2026 place price appreciation somewhere just under 2%. Since housing is the biggest expense for most family budgets, this disinflation in the housing market will help the rate of inflation to come down.
The Fed is (currently) committed to keep rates “higher for longer” until inflation is down to their 2.0% target rate. It was last seen in the 2.6%–2.8% range depending on which methodology you monitor. There are three additional factors that will cause inflation to decline moving forward. One, the tariffs that were introduced mid-2025 will begin phasing out of the YOY calculations by third quarter of 2026. Second, over tha last 12 months, the Unemployment Rate rose from 4.2% to 4.6%. Diminished collective earnings lead to lower consumer prices.
And third, but certainly not least, the President will purportedly select a new Chair of the Federal Reserve by the end of January. Because President Trump has been lobbying for lower rates as part of his plan for making America great again, he (and he alone) is sure to choose an FOMC boss who subscribes to his viewpoint. Rumor has it, the top two contenders are both named Kevin.
