For 2026, expect lower mortgage rates but a still-tough housing market.

Why it matters: Homes remain unaffordable for many, especially younger people.

• Here's what industry economists predict:

Rates will stay above 6%

🏠 U.S. mortgage rates are expected to hover near 6.3% in 2026, according to Realtor.com chief economist Danielle Hale.

• Redfin also projects 30-year fixed rates to average 6.3%, dipping from 6.6% in 2025 while staying well above pandemic-era levels.

What we're hearing: "A lot of the challenges that the housing market has been grappling with — the lack of affordability and the 'lock-in effect' on existing homeowners — are still going to be present ... but the grip is kind of loosening," Hale tells Axios.

The big picture: Cheaper monthly payments could lift home sales, even if they won't move the needle for every buyer as economic uncertainty and other costs loom large.

Also offering shoppers some relief: Wages are expected to grow faster than home prices, which will increase another 1% in 2026, per Redfin's forecast.

🏠 More roommates, fewer babies

High housing costs may be reshaping U.S. households.

• Think: More adult children living with their parents (and vice versa), smaller families and more friends buying homes together, "often with prenup-style agreements," per Redfin researchers.

Between the lines: "Entry-level inventory remains tight, limiting options for first-time buyers," says Selma Hepp, chief economist at Cotality, an industry data provider.

What we're watching: "Renovations that create space for multiple generations are becoming increasingly common" — from garage conversions to separate suites for adult kids or aging parents," Redfin chief economist Daryl Fairweather tells Axios.

🏠 Tale of two markets persists

The housing market's regional divide isn't disappearing.

Catch up quick: Home prices are rising faster in the Northeast and Midwest, where there's less newly built housing.

• In the South and West, they're softening as pandemic-era migration slows and insurance costs climb.

The latest: Northeastern and Midwestern metros dominate Realtor.com's annual ranking of the top housing markets. That's a big shift from a year ago, when the top 10 were exclusively in the South and West.

The bottom line: Prices will likely increase 3% to 4% in the Northeast and Midwest this year, "supported by tight inventory and strong labor markets," Hepp tells Axios.

• In the Sunbelt and West, prices are expected to cool further but remain above pre-pandemic levels.

Nationally, homes are changing hands at record low rates (and usually take longer to sell in the colder months).

• Roughly 70% of homes for sale in October sat on the market for at least 60 days, long enough to go "stale," according to Redfin.
• Many sellers are now pulling their listings rather than cutting prices.

Pro tip: Don't skip decluttering your bedroom — even if no one else sees it.

Why it matters: "When you don't make your own space a priority, it leads to feelings of stress, overwhelm, and a lack of control that you carry with you throughout your day," write authors Meg DeLong and Ea Fuqua of "Tidying Up."

To tidy up where you get ready, DeLong and Fuqua, co-founders of a Nashville-based organizing company, recommend these daily tasks:

• Make your bed.
• Clear your nightstand.
• Put away clothes.
• Wipe down and organize your vanity. (They suggest storing your most-used products in a top drawer.)
• Pick up items left on the floor.
• Turn on a fan or crack a window.

The bottom line: "Creating a peaceful, organized bedroom isn't just about aesthetics. It's about setting the tone for both your day and night," DeLong and Fuqua write.

💰 Last year, 20 Boulder County firefighting agencies applied for funds to replace aging equipment and cover new technology costs — the most since the county's emergency services grant was first offered in 2023.

• The grant's coordinator cites rising equipment costs and limited state and federal funding for the uptick. (Daily Camera 🔑)

Supporters of the family of the man charged with the Pearl Street terror attack gathered Monday in Colorado Springs to call for their release. Hayam El-Gamal and her five children remain in ICE custody in Texas. (CBS)

✈️ United Airlines will add domestic flights from DIA to Albany, New York, Chattanooga, Tenn., and Bangor, Maine, later this year. The airline also says it will relaunch daily flights from Denver to Rome in March. (DBJ 🔑)

Get ready for more at-home wellness perks, nostalgic design nods and eco-friendly upgrades, industry pros say.

State of play: "Wellness features" are now being mentioned 33% more often in Zillow listings compared to a year ago, per the real estate site's 2026 Home Trends Report.

Meanwhile, "traditional" and Art Deco styles are back — part of a bigger retro revival, according to Houzz, a design and remodeling site.

• Think: Curves, arches and scalloped edges throughout, detailed woodwork, and earth tones reminiscent of the English countryside and modern Tudors.
• Plus, opulent marble and mirrored surfaces, metallic accents and jewel tones inspired by the 1920s and 1930s.
• Behr, Valspar and Sherwin-Williams already announced their picks for the next big paint colors, a mix that includes '70s sunbaked hues and calming blues and greens.

Sustainability is also in demand.

• Mentions on Zillow jumped for certain energy-efficient homes (+70%), whole-home batteries (+40%) and EV charging (+25%), suggesting buyers want "eco-conscious living options that save them money and reduce their environmental impact," per the report.

What we're watching: Buyer favorites like home offices, fully fenced yards and walk-out basements remain hot, according to Realtor.com.

• But formal dining rooms with built-ins, infinity pools and three-car garages may be on their way out, the researchers found.