The Housing Market Is Turning a Corner Going into 2026

After a few years of sky-high mortgage rates and a whole lot of “wait and see,” something is finally shifting in the New Hampshire housing market. It’s subtle, but it’s real. Sellers are stepping back in. Buyers are testing the waters again. And for the first time in what feels like ages, we’re seeing genuine movement.

Is it a boom? No.
But it is a meaningful shift, and it’s laying the groundwork for a stronger 2026.

Here’s what’s driving the quiet comeback.

1. Mortgage Rates Are Easing Down

Rates will always wiggle up and down; that’s just part of the ride. And with today’s economic uncertainty, a little volatility is expected. But when you zoom out, the big picture matters more.

And the trend?
Rates have been generally heading down for most of this year.

Over the past few months, we’ve even seen some of the best rates of 2025. According to Sam Khater, Chief Economist at Freddie Mac:

“On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”

For New Hampshire buyers, that’s huge. Lower rates mean more buying power and a lot of folks are realizing the door is opening wider than it was even a year ago.

Redfin data shows that a buyer with a $3,000 monthly budget can now afford around $25,000 more home than they could last year. That’s a game-changer and a big part of why activity is picking up across the state.

2. More New Hampshire Homeowners Are Finally Ready To Move

For a long time, homeowners stayed put because they didn’t want to give up their low pandemic-era mortgage rates. That “lock-in effect” kept inventory painfully tight.

But as rates ease, more homeowners are choosing life first new jobs, growing families, downsizing, lifestyle changes and the result is more listings.

Realtor.com’s data shows inventory has grown significantly, inching closer to levels we haven’t seen nationally in nearly six years. And here in New Hampshire where tight inventory has been the biggest thorn in everyone’s side more options are a very welcome shift.

More homes on the market means more balance. More choice. And a much healthier path forward.

3. Buyers Are Getting Back Into the Market

It’s not just sellers showing up. Buyers are stepping back in too.

With more inventory and slightly better affordability, purchase applications are up compared to last year, according to the Mortgage Bankers Association. That’s one of the clearest signs that demand is strengthening.

And the experts agree: economists from Fannie Mae, MBA, and NAR all expect moderate sales growth heading into 2026.

No, this isn’t a rapid rebound. But it is the beginning of steady, meaningful improvement and that’s something a lot of New Hampshire buyers and sellers have been waiting for.

Bottom Line

After a few slower-than-normal years, New Hampshire’s housing market is turning a corner. Easing mortgage rates, rising inventory, and more engaged buyers are bringing new energy into the market and setting the stage for a more active 2026.

If you’re thinking about buying or selling, or you just want to understand what this shift means for your situation, let’s connect. I’m here to help you navigate what’s next with clarity and confidence.