As we move deeper into 2026, the housing market continues to shift from the exceptional conditions of the past few years toward a more balanced landscape. Mortgage rates, home prices, inventory levels, and refinancing trends are all shaping buyers’ and sellers’ decisions — especially in competitive North Texas markets like Keller, Southlake, Westlake, and Colleyville.

Here’s the latest look at what’s happening and what it means if you’re thinking about buying, selling, building, or refinancing this year.

Interest Rates: Stabilizing Near 6%

Mortgage rates have eased from their peak but remain elevated compared with the ultra-low levels seen earlier in the decade. As of early 2026, the average 30-year fixed mortgage rate has hovered just above 6%, and the 15-year rate around 5.4% — modestly lower than last year and providing a bit of relief for buyers and refinancers. 

Experts forecast rates will stay in the mid-6% range throughout 2026 without a dramatic drop, barring significant economic shifts. 

What this means:

  • Buyers have slightly more affordability than last year, particularly as wages and inflation adjust and rates edge lower. 

  • Sellers still face a market where many would-be sellers remain “locked in” to low rates from earlier years, limiting resale supply. 

New Home Market: Builders Adapting to Demand

New construction activity remains a meaningful part of the housing market, especially in growth corridors like North Texas. A notable share of new homes are now selling with price discounts, reflecting builders responding to affordability pressure and increased inventory in parts of the South and West. 

New construction trends:

  • Builder price responsiveness is helping expand options for buyers. 

  • Inventory growth in many Texas markets gives buyers more choice among newly built homes. 

  • In North Texas, new developments and model home tours remain popular, particularly in Keller, Southlake, and Westlake where demand for move-in-ready product stays strong.

For buyers weighing new construction vs. resale, today’s environment means more negotiating power with builders andthe opportunity to customize your home in advance of move-in.

Resale Market: Buying Power & Longer Days on Market

Across the U.S. — and reflected locally in DFW — resale markets have shifted toward greater buyer leverage:

  • Buyers have been scoring discounts, with a large share of homes selling below original list price. 

  • Homes are spending a bit more time on the market, and sales volume can be seasonal — with winter often slower and spring expected to pick up. 

Even modest rate relief helps buyers feel more comfortable making offers, especially when sellers are adjusting pricing expectations.

Locally, this means:
✔ More resale options for buyers who felt “priced out” in prior years
✔ Potential negotiation room on price or terms
✔ Sellers needing strategic pricing and staging to compete for attention

Refinancing: A Growing Opportunity

Refinancing activity has been responsive to interest rate dips. In some periods late last year and into early 2026, refinancing demand jumped as rates briefly dipped below 6%, giving homeowners a chance to save on monthly payments or adjust loan terms. 

While refinance volume is still lower than during the boom market years, homeowners who locked in higher rates in 2023–2024 may find value in exploring refinancing if:

  • They’ve built sufficient home equity

  • Rates available today are lower than their current note

  • Their long-term plans align with reduced monthly obligations

Talk with a trusted lender early to understand costs vs. savings, especially as refinance trends continue to evolve. 

What This Means for North Texas Buyers & Sellers

Buyers:

  • Stable but still elevated rates mean don’t wait indefinitely hoping for huge rate drops — it may be more effective to act when you find the right home. 

  • New construction and resale inventory gives options that weren’t as abundant in recent tight markets. 

  • Take advantage of builder incentives, pricing flexibility, and negotiating leverage where available.

Sellers:

  • Smart pricing and staging matter more than ever — buyers have choices and aren’t rushing like they did during the lowest-rate years. 

  • Presenting a well-prepared home (including inspections, updates, and curb appeal) can help shorten time on market.

Refinancers:

  • If your current mortgage rate is above today’s averages and you plan to stay in your home several more years, exploring a refinance could lower your monthly cost or allow for other financial flexibility. 

Looking Ahead: 2026 Market Signals

Most forecasts suggest continued rate stability with potential modest declines by year-end, especially if inflation continues to cool and the economy remains steady. 

Nationwide, slight home price growth is expected, with buyers benefiting from a more balanced market and sellers adapting to buyer expectations. 

Here in North Texas, strong migration, job growth, and demand for quality neighborhoods — including Keller, Southlake, Westlake, and Colleyville — continue to support long-term housing fundamentals. 

In short: 2026 feels like a market of options rather than extremes — and buyers and sellers with clear goals and thoughtful strategies tend to benefit the most.