About this episode
Many Americans are wondering whether the housing market has finally begun turning a corner—or if uncertainty is still here to stay. After years of elevated mortgage rates, stubbornly low inventory, and affordability concerns, the question feels more relevant than ever.Today, mortgage expert Dale Vermillion, author of Navigating the Mortgage Maze: The Simple Truth About Financing Your Home, joined the show to weigh in on what the 2026 housing landscape may look like and how today’s buyers and sellers can navigate it with wisdom.A More “Normal” Market ReturnsAccording to Vermillion, the extreme swings of recent years may finally be behind us.“It isn’t the market of 2020–2021 when rates were in the twos, threes, and fours,” Vermillion explains. “But it’s also certainly not 2008. This is a very normal market.”He noted that although many think of today’s mortgage rates as high, they are actually below the 30-year average. Inventory is rising, sales are stabilizing, and government attention on housing has increased. Together, these factors point toward a gradual shift into a buyer’s market—a welcome change for those who’ve spent the last few years watching listings disappear before they could schedule a tour.A common frustration remains: if rates have risen, why haven’t prices fallen faster?The answer is complex. While price increases largely flattened this year (+0.7%), Vermillion notes that the market remains regional rather than national. Certain areas have softened, but not enough to drive a nationwide price reset.A major reason: the “lock-in effect.” Millions of homeowners refinanced below 3% in 2020–21 and weren’t willing to trade those rates for a higher one. But as Vermillion observes, that dynamic is fading. For the first time in years, more loans now exist above 6% than below 3%, allowing inventory to loosen.Why Fed Rate Cuts Don’t Equal Lower Mortgage RatesEven though the Federal Reserve has been cutting rates, mortgage rates haven’t always followed. That’s because mortgage rates are tied more closely to the bond market, inflation data, and job reports—not directly to the Fed’s benchmark rate.Another overlooked factor: mortgage-backed securities (MBS). When the government increases MBS purchases, mortgage rates often decline more reliably than when the Fed cuts consumer rates.The emotional side of the housing market can’t be ignored. The bidding wars of 2020–21 left many would-be buyers discouraged. But Vermill
