After years of high mortgage rates and slowed buyer activity, the housing market is finally showing signs of renewed energy. More Triangle area sellers are listing their homes, and more buyers are jumping back in. And while it may not be a full-blown boom just yet, momentum is building.
This shift may be gradual, but it’s meaningful, and it could help set up a stronger year ahead in 2026. So, what’s behind this market rebound? Here are three key factors quietly pushing the housing market forward.
1. Mortgage Rates Are Trending Down
Mortgage rates naturally fluctuate over time, and given today’s economic uncertainty, some volatility is expected. But when you step back and look at the bigger picture, a clearer trend emerges.
Rates have generally been falling for most of 2025 (see graph below):
And in recent months, we’ve seen some of the best rates of the year. Sam Khater, Chief Economist at Freddie Mac, notes:
On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”
Why does that matter? Because when rates drop, affordability improves. That opens new doors for buyers. For example, Redfin reports that a buyer with a $3,000 monthly budget can now afford about $25,000 more home than they could a year ago. That’s a game-changer, and a major reason why buyer interest is growing.
2. More Homeowners Are Listing Their Homes
Many homeowners stayed put over the last few years to hold onto their historically low mortgage rates. But as rates soften and life changes take priority, that lock-in effect is starting to fade. This means more people are deciding to move, and that’s boosting the number of Triangle area homes for sale.
According to Realtor.com, the number of homes for sale is climbing. In fact, inventory levels are beginning to resemble what we saw six years ago (see the blue on the graph below):
That’s great news for Raleigh buyers. More inventory means more choices, less competition, and a market that’s becoming more balanced overall.
3. Buyer Activity Is Picking Up
It’s not just sellers making moves again. Buyers are returning, too. Thanks to improved affordability and more homes to choose from, demand is ticking up. The Mortgage Bankers Association (MBA) reports an increase in purchase applications compared to last year—a clear sign that buyers are re-engaging (see graph below):
And experts believe this trend will continue. Industry leaders at Fannie Mae, MBA, and the National Association of Realtors (NAR) are all forecasting moderate sales growth as we head into 2026.
No, this recovery won’t be immediate. But it’s already underway. And it’s shaping up to be the kind of slow, steady progress that lays the foundation for long-term growth.
Bottom Line
After a few slower years, the housing market is finally shifting in a positive direction. Lower mortgage rates, more homes for sale, and renewed buyer interest are all helping to restore momentum.
Contact Linda Craft Team Realtors to discuss what this means for your plans and how you can take advantage of the market’s rebound in 2026.