Is Now a Good Time to Buy a House?

Key takeaways:

• If you have the means, now may be a good time to buy a house.
• Mortgage rates are elevated and volatile due to economic pressures stemming from the conflict in the Middle East.
• It’s a buyer’s market—there are 480,000 more home sellers than buyers—giving homebuyers leverage in negotiation.
• Consumers are wary due to record-high house prices, a difficult job market, and economic uncertainty, but demand is starting to return.

The spring homebuying season is underway, but the housing market is only beginning to thaw from its winter freeze. After a very slow 2025, the same sluggish trends are persisting well into 2026: few home sales, limited listings, and near-record monthly costs—though there are signs that activity is beginning to improve.

Adding to the difficulty, mortgage rates have jumped to six-month highs amid continued economic uncertainty tied to the conflict in the Middle East. Broader pressures—including political volatility, AI fears, tariff uncertainty, and a difficult job market—are also weighing on consumers and keeping rates elevated. 

A lot is changing, so it’s no surprise that buyers are wondering if now is the right time to take the leap.

In short, whether or not it’s a good time to buy a house boils down to if it’s a good time for you to buy a house. Let’s dive a bit deeper into today’s market trends to help you answer: “Should I buy a house now or wait?”

From Redfin’s Chief Economist

“Now is a good time to buy a home, if you can afford it. Prices keep climbing, which is pushing some buyers out of the market and giving those who remain an upper hand in negotiations. Elevated mortgage rates and an uneasy economy are making everyone wary, though, and local housing markets vary widely. Buyers serious about making offers should consult a local agent and be confident in their finances and future income.” – Daryl Fairweather, Redfin Chief Economist.

What buyers need to know about the housing market

Here are some key market trends to keep an eye on and help you make an informed homebuying choice. We’ll cover house prices, mortgage rates, supply, and demand, and inflation.

House prices are high but slowly leveling out

The median U.S. sale price is $396,000—up 2.4% from a year ago. House prices are nearly 30% higher than they were five years ago.

Because affordability has been so strained, many buyers and sellers have been holding out for better deals and higher offers, causing inventory to build up as they wait for the market to thaw. This push-pull dynamic has kept prices elevated, giving some buyers a window of opportunity. 

But price growth has started to slow as the market undergoes a long, slow reset. Plus, a resilient economy has helped bring back a bit of demand. Home prices have grown by around 1.2% year-over-year since last March, compared to ~7% growth from January 2012 to before the pandemic. Redfin predicts that affordability will improve this year, as wages outpace home price growth and inflation. 

>> Read: Redfin’s Weekly Economic Breakdown

Mortgage rates remain elevated and volatile

As of May 18th, the weekly average 30-year fixed mortgage rate sits at 6.68%—the highest level in ten months. 

“Mortgage rates have been elevated and volatile over the last two months almost entirely because of the war in Iran and its effects on global energy prices and stock markets,” said Chen Zhao, Head of Economics Research at Redfin. “As oil and gas costs fluctuate, experts and consumers grow increasingly worried about stagflation—a combination of high inflation and slow growth. Many now expect the Fed to raise rates instead of cutting them this year. Time will tell how the war will impact the American economy and housing market, but the longer it drags on, the greater the impact will likely be.”

Rates have been trading between 6.1%-6.3% since late 2025. Redfin predicts that mortgage rates will average 6.3% for 2026.

>> Read: Pending Home Sales Jump 10% From a Year Ago to Highest Level Since 2022

How mortgage rates affect housing costs

Mortgage rates are important for buyers because they directly translate to monthly housing costs. The higher the rate, the more you pay every month. If rates drop, you can save tens of thousands over the lifetime of your mortgage. 

Let’s see how your monthly payments change with different rates, using data from our Mortgage Calculator.

Buyers have the upper hand

The housing market strongly favors buyers. Housing inventory has risen from its post-pandemic low—particularly in the Sun Belt—giving buyers more negotiating power. However, supply is still limited in small parts of the Midwest and East Coast, putting sellers in charge and pushing up prices. 

In general, high costs are keeping buyers on the sidelines and freezing home sales. In a growing share of cases, buyers are backing out after signing a home-sale agreement, adding to the strain.

However, recent Redfin data suggests that this trend may be fading as more buyers return, shrinking the imbalance between buyers and sellers. It’s still a buyer’s market, but it’s no longer a strengthening one.

Inventory is climbing

There are nearly 1.5 million homes for sale today—historically low but one of the highest monthly levels since the pandemic. This is the primary driver behind today’s buyer’s market. Florida and Texas have the most homes on the market today, by far.

Housing inventory is high because a larger share of sellers are listing their homes than buyers are buying them, with the biggest imbalances in disaster-prone areas in Florida. This gives today’s buyers more leverage for concessions.

Listings have been slowly rising since March, as homeowners looked to take advantage of the spring buying season. It wasn’t until recently that buyers followed suit.

Demand is low but heating up

Homebuyers have been stuck on the sidelines for years waiting for affordability to improve. While this is still largely the case, more are hitting the pavement today thanks to a resilient job market and declining recession risk. 

Still, there are far more sellers than buyers, and a majority of listings have been sitting on the market for more than two months. For those who have the budget, this could be a good time to enter the market, as sellers may be more open to negotiation.

Buyers have the most leverage in Sun Belt metros—especially Austin, which is now the slowest major housing market in America. But there are still pockets of competition. In New York metros like Rochester and Buffalo, strong demand for affordable homes is pushing up prices and putting sellers in charge. The Bay Area has recently seen a surge in popularity, too, along with parts of the Midwest.

>> Read: The Most Competitive Housing Markets in the U.S.

How to buy in an uncertain economy

With tariffs, economic whiplash, and volatile mortgage rates, many buyers are wary of getting into the market. Here are a few tips from our economists about navigating this shifting landscape. 

• Stick to your budget: This isn’t the time to stretch financially. Recession odds are lower than they have been, but the economy is still unstable. Make sure you have enough in savings to cover mortgage payments if your income changes.
• Negotiate, negotiate: The market favors buyers, so use your leverage. There’s more inventory, and offers are increasingly coming in below asking.
• Be smart about rates: Mortgage rates are down but still relatively high. Shop around, compare lenders, and ask about “float down” options if rates drop significantly after you lock in.
• Sell before you buy: If you own a home, consider selling it first. It will give you a clearer budget and help you avoid the risk of carrying two mortgages.

>> Read: How to Buy, Sell, or Rent a Home Amid Economic Uncertainty

Are you ready to buy and own a house?

When deciding whether to buy a home in today’s climate, you’ll want to think beyond market conditions and focus on your individual circumstances. Here are some personal considerations to keep in mind.

Financial health

Take stock of your current savings, credit score, and debt levels. Can you afford a house? Or does renting make more sense? 

Housing is a long-term commitment, so you’ll want a solid emergency fund—ideally covering 3 to 6 months of expenses—for maintenance and unexpected costs.

Monthly budget

Determine how a mortgage payment at today’s rates might impact your lifestyle. Make sure you can comfortably handle monthly payments, property taxes, insurance, and other homeownership expenses.

Job and location stability

Buying a house makes sense if you plan to stay put for several years. A stable job or reliable income is crucial to avoid financial strain, especially if home prices or interest rates rise further.

Choosing your location is also essential. Is your potential home prone to flooding, wildfires, or other climate risks? This is especially important today, as insurers continue dropping homeowners at alarming rates. 

Personal goals and timelines

Think about life events, like starting a family, retiring, or relocating. These factors can make owning a home either more appealing or potentially riskier if you need to move soon.

Lifestyle preferences

Homeownership comes with ongoing responsibilities, like maintenance, repairs, and property taxes. Ask yourself if you have the time, resources, and a desire to handle them.

>> Read: Am I Ready to Buy a House? 8 Questions to Help You Decide

So, is now a good time to buy a house? 

If you have the means and are ready to own a home, now is a good time to buy a house. Rates are volatile, and with today’s high prices and uncertain economy, it’s hard to know what affordability will look like down the line. But waiting for rates to fall leaves you at risk of competition among buyers and subsequent price hikes from sellers.

In a market this unpredictable, the best approach is to be prepared. Know your budget, connect with a local agent, get preapproved for a mortgage, and move quickly when the right home comes along. The longer you wait, the more competition you could see.