United States Zillow Sounds Housing Rate Warning
What Zillow’s 2026 Housing Warning Says At the center of Zillow’s 2026 housing warning was a slower market recovery. The company’s July forecast indicated that the year’s peak had likely already passed. Conditions were expected to soften through the remaining months of 2026. The warning described a market with limited upside. Zillow still expected 2026 to outperform 2025, 2024, and 2023 despite the slower recovery . Zillow’s July update projected U.S. typical home values would finish 2026 at about negative 0.2 percent annual growth. That marked a clear downgrade from earlier forecasts. Existing home sales were expected to improve only modestly. Zillow’s nowcast put sales at about 3.8 million, or roughly 1.2 percent year over year. Rates and Caution The company tied weaker momentum to borrowing costs and mortgage psychology. With mortgage rates expected to stay above 6 percent, buyer behavior was likely to remain cautious. Recent forecasts also suggested a gradual decline toward 6.2% by...