What the Rest of 2026 Could Mean for the DFW Housing Market

The first half of 2026 has been challenging for many people navigating the DFW housing market. Mortgage rates remained higher than expected, affordability continued to be a hurdle, and global uncertainty kept many would-be buyers and sellers on the sidelines.

So, what can we expect during the second half of the year?

While no one can predict the future with certainty, several trends suggest the housing market could gain momentum as we move toward the end of the year.

Mortgage Rates May Finally Start Moving Lower

One of the biggest factors keeping mortgage rates elevated has been inflation. Higher energy costs and international events have played a role in keeping inflation stubbornly high.

The good news is that oil prices have already begun trending downward.

That matters because, historically, mortgage rates and oil prices often move in the same direction. When energy prices decline, inflation can begin to cool, creating conditions that may allow mortgage rates to ease as well.

While no one knows exactly when rates will improve, or by how much, many economists believe the second half of the year could bring better borrowing conditions if inflation continues to soften.

For buyers who have been waiting on the sidelines, that could create new opportunities to make a move.

Home Values Are Still Expected To Rise

Many buyers continue hoping home prices will fall significantly, but that's not what most housing experts are forecasting.

Although every local market is different, and some areas are experiencing modest price adjustments, the overall expectation is that home prices will continue increasing nationally throughout 2026.

Current forecasts project an average price increase of approximately 2.3% this year.

Today, national home prices are already up about 1.7% year over year, according to Federal Housing Finance Agency (FHFA) data. If current projections hold, appreciation would simply need to strengthen modestly during the second half of the year to reach that expected annual gain.

Why could that happen?

Housing inventory has grown compared to last year, but that increase appears to be slowing. If mortgage rates improve, more buyers may return to the market, creating additional competition for available homes. When buyer demand increases faster than inventory, prices tend to move upward.

For buyers, waiting doesn't necessarily mean homes will become less expensive. And for homeowners considering selling, continued appreciation is encouraging news.

Home Sales Could Gain Momentum

If the market has seemed quieter lately, you're not imagining it.

Home sales have been slower than many economists anticipated. That doesn't mean people have stopped wanting to buy or sell, it simply means many have been waiting for better affordability, greater confidence, or clearer market conditions.

As those factors begin improving, more buyers and sellers may finally decide it's time to move.

As Odeta Kushi, Deputy Chief Economist at First American, explains:

"Overall, we expect pent-up demand to continue emerging gradually. But the pace of recovery will vary significantly across markets and will depend on the path of rates, labor market conditions and inventory growth."

Current forecasts suggest that home sales will need to be noticeably stronger during the second half of 2026 than they were during the first half in order to meet year-end expectations. That tells us many economists believe activity is likely to increase as the year progresses.

For buyers and sellers who have been waiting for the right time, that could mean more opportunities ahead.

Bottom Line

The remainder of 2026 may not be perfect, but there are several reasons for optimism.

Mortgage rates could begin easing, home sales may increase, and home values are still expected to appreciate at a healthy, sustainable pace. If you've been waiting for signs that the market is shifting, those signs may already be starting to appear.

Every real estate market is different, and national headlines don't always reflect what's happening in your neighborhood. If you're thinking about buying, selling, or simply want to understand what these market trends mean for your situation, I'd love to help.

Contact me, Teresa Hill, today for personalized guidance, expert advice, and a local market strategy designed around your real estate goals. Whether you're ready to move now or just beginning to plan, I'm here to help you make confident decisions every step of the way.

*Information sourced from First American, FHFA, Wall Street Journal, Zillow, Realtor.com, & Keeping Current Matters