Market Update | May 2026
Staying informed on market conditions is key for navigating the real estate journey. Here’s what you need to know…
Mortgage Rates
A Spring Shift — Mortgage rates eased again this week, with the 30-year fixed averaging 6.23%, down from 6.30% last week and 6.81% a year ago. After climbing through much of March, April has brought a noticeable shift, with rates now sitting at their lowest level in about five weeks. While mortgage rates have come down a bit in the last few weeks, forecasts don’t show a major drop ahead.
Freddie Mac Primary Mortgage Market Survey®. Rates based on 30-year fixed-rate mortgage.
Homes Prices
Holding Steady — Home prices are continuing to rise in many areas, largely due to still-limited inventory. Many homeowners are holding onto the low rates they locked in a few years ago, which is keeping a lid on how much inventory can grow.
In March 2026, U.S. home prices were up 1.1% compared to last year, with a median price of $436,412, according to Redfin. While price growth has slowed compared to the past few years, current conditions don’t point to a sharp decline.
Housing Supply
Inventory Rebound — Housing supply is picking up momentum this spring. New listings rose 3% year over year in mid-April, marking the strongest growth since late last year. In fact, there are nearly twice as many new listings hitting the market now compared to just a few months ago.
Overall inventory is also improving, with over one million homes for sale nationwide, up more than 8% from last year. While still below pre-pandemic norms, this increase is creating more opportunity and helping the market move toward a more balanced state.
Market Activity
A More Balanced Pace — The market is settling into a more normalized rhythm. Well-priced, move-in-ready homes are still selling quickly. Others are taking longer to sell, creating a split market that looks more like pre-pandemic conditions.
About 18.5% of homes went pending within a week, and those homes were significantly more likely to spark bidding wars. At the same time, price reductions remain common, with roughly one-third of homes adjusting their price before selling. This mix of fast-moving and slower listings reflects a healthier, more dynamic market overall.
Looking Ahead
More Opportunity, More Strategy — As rates stabilize and inventory builds, the window for both buyers and sellers is opening wider. Buyers are gaining more options and time to make decisions, while sellers who price strategically are still seeing strong results. The takeaway: this isn’t a market to sit on the sidelines waiting for a perfect moment. It’s one where staying informed and having the right strategy can make all the difference if you’re ready to make a move.
At Cambria Mortgage, we’re here to help you move forward with clarity and confidence. Whether you’re buying, building, refinancing, or simply planning ahead, our team can review your purchasing power, evaluate your current mortgage strategy, and help you determine the right next step.
Sources: Redfin, Redfin, Realtor.com, Keeping Current Matters, Zillow, Housing Wire