Is now a good time to buy a home? While some signs seem more positive than they have in recent history, many hopeful homebuyers could still face challenges.
If you’re considering diving into the housing market, it’s a good idea to get a sense of rates, supply, affordability and other economic factors. But ultimately, your decision to make such a major purchase should depend largely on your own goals, budget and timeline.
Below we’ve provided a summary of some potential major housing indicators to paint a picture of the current market so you can start the buying process clear-eyed and confident. Bear in mind, though, that the market is constantly changing.
Want mortgage experts who care deeply about keeping you informed and empowered? Let Newrez show you what’s possible. Reach out today.
Mortgage Interest Rates
As of March 6, 2026, Newrez data shows that 30-year interest rates for conforming loans are at 6.081%*—a favorable change from 6.535% on the same date last year. But even with this dip, current rates still meaningfully affect monthly payments and may give some buyers pause.
How Do Mortgage Interest Rates Work?
Mortgage rates are influenced by various economic forces, but they’re tied closely with the 10-year Treasury Yield. They can also be impacted by the federal funds rate, inflation and housing supply and demand. Keep in mind that your own individual mortgage rate will be impacted by your credit score, debt-to-income ratio and other factors unique to your loan. Learn more about the factors that influence interest rates.
What Does a Rate Drop Mean?
Rate drops can be caused by a combination of economic factors. If rates fall, it could encourage some homebuyers to enter the market. Homeowners, meanwhile, might take the opportunity to refinance their mortgage.
If you have a loan with Newrez and you’re considering a refinance, know that in addition to possibly getting a new interest rate, you may be able to shorten or lengthen your loan term depending on your needs, or even access cash.**
Housing Affordability
The good news is that recent housing price growth has slowed significantly from its rapid pace in 2021 and 2022. But the effect from those years still lingers nationwide—housing price growth has left income growth in the dust, creating hurdles for many potential buyers in low- and middle-income brackets.1
Options do exist, though. Newrez offers several loan products designed to help qualified buyers find a path to homeownership:
- FHA loans are designed to make homeownership more accessible, allowing qualified borrowers to put down as little as 3.5% and accommodating imperfect credit. Learn more.
- HomeReady® or Home Possible® loans allow qualified borrowers to put down as little as 3%, and allow borrowers to use gifted funds. Learn more.
- USDA loans enable qualified borrowers to put down as little as 0%. These loans are available for homes in certain rural or suburban areas and are income-dependent. Learn more.
- VA loans are available to eligible Veterans, Active-Duty Military and surviving spouses. With full entitlement, borrowers may be able to put down 0%. Learn more.
National vs. Local Affordability
It’s also worth noting that affordability varies widely by local market. Affordability is harder to come by in Providence, RI, than it is in Toledo, OH, for example.2 So if you’re considering different locales for a potential purchase, it’s relevant to include affordability in your calculations.
Taxes and Insurance
Another important affordability consideration before committing to a home is the cost of taxes and insurance. Both taxes and insurance have increased meaningfully in recent years, and make up a growing share of the average housing payment.3 However, this impact also varies by area—that’s why it’s important to look at the factors that sometimes contribute to increased insurance costs, like wildfire and flood risk.
Housing Supply
Supply looks different from city to city, but overall, the U.S. is still facing a significant housing shortage, and progress toward closing the gap has been slow.
The U.S. Census Bureau reports that fewer new homes were built in 2025 than they were the previous year, which could limit new-construction options.4 At the same time, many existing homeowners who might have otherwise sold may still be reluctant to lose a mortgage rate that’s lower than currently available rates. This reduces the availability of existing homes for sale.
If housing supply is limited in your area, you may want to consider buying a fixer-upper home and using a renovation loan to finance your way to your dream house. With a Newrez Renovation Loan, you can plan and budget for each step in the renovation process and then roll it into your mortgage payment.
Home Sales
With limited supply and only modest rate relief, home sales are ticking along at a tepid pace, according to the National Association of Realtors®.5 Even so, new home listings increased online in February, and listing prices tipped lower, which is a hopeful sign as we near the typical height of homebuying season in spring into summer.4
Taking the Homebuying Plunge
While challenges remain, especially around supply and affordability, it’s encouraging to see price growth has slowed overall and rates have eased slightly from a year ago. But even with these indicators, no one can say for sure what rates might do next.
Because timing the market is always a bit of a guessing game, it’s smart to focus on what you can control: your goals and your finances. If you think you’re ready to buy a home, set up a chat with a Newrez mortgage expert—we’ll work hard to find you a great loan that fits your lifestyle.
References:
2 REALTORS® Affordability Distribution Curve and Score - Realtor.com Economic Research
4 New Residential Construction Press Release
5 March 6, 2026 Economic and Housing Market Update - Realtor.com Research
National Association of Realtors® is a registered trademark of the National Association of Realtors.
This rate is base pricing only and does not account for borrower credit score, down payment and other factors. Speak to a Newrez loan expert to get your interest rate.
**By refinancing an existing loan, the total finance charges may be higher over the life of the loan.
^Customers can receive a real estate closing cost credit paid by Newzip equal to 0.5% of the home sales price when buying a home. Offer not available in AL, AK, IA, KS, LA, MS, MO, OK, OR, or TN. Only eligible for loans closing with Newrez.
†Customers can receive a 1% real estate agent commission reduction when selling with a Newzip affiliated real estate agent.