December Real Estate Roundup: 2026 Rates Outlook and Prepping Clients for New Year Buying

Hard to believe it’s December, but it’s a great time to focus on finishing out the year successfully, and starting 2026 with a bang. Let’s look at the latest market news and what you and your buyers can do now to prepare for homeownership next year.

Fed’s Final 2025 Meeting

After much debate, the Fed cut its base rate by .25% at its final meeting of the year, December 10. And once again, mortgage rates went up.

As you know, the Fed rate is for short-term lending like credit cards; mortgage rates more closely follow the ten-year Treasury yield. Still, we like to keep an eye on the Fed because their policies influence the overall economic picture and help us predict buyer attitudes.

As for the Fed in 2026, we’ll have to see. Chair Jerome Powell has commented that there is evidence that inflation is coming down. But divisions inside the Fed have widened, and President Trump is expected to name Powell’s successor soon. As of now, National Economic Council director Kevin Hassett is considered the leading candidate and expected to steer rates lower. I’ll keep you posted.

2026 Mortgage Rate Predictions

Regardless of Fed shakeups, heading into 2026, most housing forecasts are looking pretty positive, hinting growth in home sales, improved affordability, and yes, (somewhat) lower rates. Here’s a quick roundup of what some of the biggest players expect (and of course these can change at any time): 

• Fannie Mae: Rates to gradually fall to 5.9% by year-end 2026.

• National Association of REALTORS® (NAR): Rates to gradually drift down toward 6%

• Redfin: Rates to head toward 6%

• Mortgage Bankers Association: Rates stay near 6.4% throughout the year, with minor fluctuations within the low 6% range

• National Association of Home Builders (NAHB): Projects an average rate of 6.19% for 2026

As you can see, even the experts differ a little about how low rates will go. What’s most important now, though, is to remember that lower rates could also spike 2026 homebuying demand and drive prices up. So if your clients find a house in their price range at current interest rates, then they should talk to me now before waiting for slightly lower rates down the line.

Now let’s talk about how to get your buyers into a home in 2026!

Tips to Prepare for 2026 Homebuying

First off, the best thing your clients can do is reach out to me now. No commitments - we can just have a conversation about their homebuying and financial goals. The same goes for their financial planner and accountant. Knowledge is power, so chatting with professionals is a great start to the financial year.

Even if they’re not ready to buy, I can do a soft pull of their credit to see where their scores stand, without any impact. Soft pulls are used for processes like pre-qualification offers and employment screening, giving a high-level overview of their creditworthiness.

Once we know how their credit lines up, getting pre-approved for a mortgage can really solidify your offer. It helps your buyers stand out from the competition, shows sellers that your clients are serious, and that the financing is already underwritten.

Another smart step is to get a real picture of your clients’ assets and savings – the cash they have on hand. Budgeting can go a long way toward building up that money for the down payment (ask me about down payment assistance programs!) and lowering the debt-to-income ratio. Conventional, FHA, USDA, and VA all have different DTI requirements, but a good rule of thumb is spending less than 45% on recurring monthly debts.

Here are a few budgeting tips to share:

• Cancel unused streaming services.

• Eat at home instead of restaurants (ditto coffee!).

• Be mindful of electricity use, and try tools like energy-efficient light bulbs.

• Buy common items (paper towels, etc.) in bulk.

• Set up an automatic savings account at the bank to send a fixed amount from their paycheck directly to savings. Other options are high-yield savings or money market accounts to earn extra interest for deposits made over a period of time. A financial planner can also assist here.

Watching one’s money can also help with post-purchase needs. On top of closing costs and furniture, window treatments and so on, not all homes are perfect when clients move into them, even newly built ones. A roof may need repair, a water heater might give out. It’s good to be prepared.

It’s also never too soon to research the local market (and you can help!). Pay attention to price levels, how quickly homes are selling, and local property taxes. This research will help clients set realistic expectations and act quickly when the time comes.

Consider the home’s priorities. Make a list of “must-haves” versus “nice-to-haves" (location, number of bedrooms, layout, a fixer-upper vs. move-in ready). Being clear on their non-negotiables will streamline the search process later.

Visit open houses to get a feel for different property types, neighborhoods, and potential issues to look out for in person.

Gather documents now. As W2s and other tax documents arrive in January, go ahead and set them aside for home pre-approval. Also collect:

• Federal tax returns from the past two years

• Recent paycheck stubs

• Statements for all bank, savings, and investment accounts

• Statements for all outstanding debt (student loans, car loans, credit cards, etc.)

Also remind your clients that if they receive a tax refund to set it aside toward homeownership.

Finally, make homebuying the 2026 priority. Don’t open new credit cards or make large purchases like vehicles. Don’t change jobs or banks, cosign a loan, or take a big trip. Stay on top of budgeting and credit, and check in with me for help. I’m excited to start your buyers on the road to a new home next year!

Easy Stovetop Cider

I hope this article helps you close out the year with some fresh ideas, and a little treat – holiday cider! You can make this easy recipe on the stove in under an hour:

Ingredients

• 1 gallon apple cider/unfiltered apple juice

• 1 large orange, sliced

• 3-4 cinnamon sticks

• 1 tablespoon whole cloves (about 10-12 cloves)

• 1 tablespoon whole allspice berries

• Optional: 1/4 cup brown sugar or maple syrup for extra sweetness; cranberries and extra cinnamon sticks for garnish

Instructions

1. Combine all ingredients in a large pot or Dutch oven

2. Heat at medium until the mixture just begins to simmer, but don’t let it boil

3. Reduce heat to low, cover, and simmer gently for 30 minutes to an hour

4. Strain the cider through a fine-mesh sieve to remove the spices and fruit solids before serving

5. Serve the cider hot in mugs, garnished with fresh orange slices, cranberries, or an extra cinnamon stick if desired

Optional Additions

• Spike it: For an adult version, add a splash of dark rum, brandy, or bourbon to individual mugs or the whole batch just before serving for an adult version.

• Extra flavor: Add star anise pods, fresh ginger slices, or a splash of vanilla extract for different flavor profiles.

Happy holidays! I look forward to working with you in the new year!