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 will 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 in 2026, 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 rise another 1% in 2026, per Redfin's forecast.

• The median price of a home sold in the U.S. in the second quarter was $410,800, federal data shows, up 27% from the same time in 2019, before the housing market went haywire.

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," according to 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 — as "families rethink the homes they already have," Redfin chief economist Daryl Fairweather tells Axios.

Tale of two markets persists

A regional divide in the housing market isn't going away.

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

Homes are generally selling faster in the Midwest and Northeast and slower in the South — another sign of a split U.S. housing market.

Zoom in: In Huntsville and Madison County, the Huntsville Area Association of Realtors reports that homes were spending an average of 58 days on the market in December.

• Across the nine-county region, the average was 66 days.

The big picture: In parts of the South where builders have cranked out new homes, prices have eased and buyers have gained room to negotiate.

What we're watching: 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.

If decluttering is your New Year's resolution, don't skip 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 of clutter.
• Put away your 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.

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

Why it matters: These trends indicate what American homes may look like in 2026.

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 the home, 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 jumped on Zillow 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's analysis of this year's top home trends.

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