Deciding whether to buy a home now or wait until 2026 depends on several factors, including mortgage rates, home prices, and your personal circumstances.
Here’s an overview to help you make an informed decision:
🏡 Housing Market Outlook
- Mortgage Rates: As of mid-September 2025, mortgage rates have decreased to approximately 6.25%. Fannie Mae projects a further decline to around 6.0% by the end of 2026.
- Home Prices: Nationally, home prices are expected to rise modestly. Fannie Mae forecasts a 2.8% increase in 2025 and 1.1% in 2026. Zillow anticipates a slight decline of 1.0% between June 2025 and June 2026.
- Inventory and Competition: The week of October 12–18, 2025, is projected to offer optimal buying conditions due to increased inventory, lower housing prices, and reduced buyer competition.
✅ Reasons to Buy Now
- Lower Mortgage Rates: With rates currently around 6.25%, you may secure a favorable rate before potential increases.
- Increased Inventory: The upcoming period offers more listings, providing better selection and negotiation opportunities.
- Long-Term Investment: If you plan to stay in the home for several years, purchasing now can allow you to build equity over time.
⏳ Reasons to Wait Until 2026
- Potential for Lower Prices: Some forecasts suggest a slight decline in home prices, which could make homes more affordable in 2026.
- Improved Affordability: If mortgage rates decrease as projected, your monthly payments could be lower, enhancing affordability.
- Personal Circumstances: Waiting may provide more time to save for a larger down payment, improving loan terms and reducing monthly payments.
🧭 Considerations
- Personal Financial Situation: Assess your credit score, savings, and job stability. A strong financial position can help you secure better mortgage terms.
- Local Market Conditions: Research the housing market in your specific area, as conditions can vary significantly by location.
- Long-Term Plans: Consider how long you intend to stay in the home. If it’s a long-term investment, short-term market fluctuations may be less of a concern.
🏠 Local Market Insight: Princeton, Texas
While specific data for Princeton is limited, the broader Dallas-Fort Worth area has seen a steady increase in home prices and inventory. The upcoming optimal buying period in October could be advantageous in this region as well.
🧠 Final Thoughts
If you’re financially prepared and find a home that meets your needs, buying now could be beneficial, especially with the anticipated increase in inventory and potential for lower mortgage rates.
However, if you’re looking for the best possible deal and can afford to wait, holding off until 2026 might offer more favorable conditions.
Ready to find your dream home in Texas? Call or Text us today! +1 (347) 831-6085 We care more than a bank and will guide you every step of the way!