Q4-2026 Quarterly Economic & Housing Market Update

Mortgage rates have climbed to 7.40%, inflation has accelerated to 3.7%, and hiring has slowed to just 29,000 jobs. Meanwhile, existing home sales remain below 4 million annually despite improving inventory. The problem is no longer simply a shortage of homes. It is the widening gap between what buyers can afford and what sellers are prepared to accept.

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Mortgage Rates Soar, Sales Slump, But Home Prices Still Rise

U.S. home prices are expected to edge up just 1% over the next year—even as mortgage rates top 7%, sales remain weak and affordability pressures build. The latest Q3 2026 VeroFORECAST℠ reveals a sharply divided housing market, with stronger gains in the Northeast and Midwest and modest declines across several Texas metros. See which markets are positioned to rise and where prices may soften.

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