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The housing market loves to keep us guessing. But the truth is, the right time to buy is when it makes sense for you — not when the headlines say it’s perfect.
Whether you’re actively looking or just thinking a few moves ahead, here’s how to get your game plan in place.
How’s the housing market right now?
Nationally, new listings are off to a sluggish start in 2026. But don’t get too frustrated — that’s not uncommon for this early in the homebuying season. On the plus side, mortgage rates are considerably lower than they were this time last year, helping buyers stretch their dollar.
- What’s coming next: In most places, peak buying season kicks off in April, but it’s possible to score a deal with less competition right now before the busiest months.
- How to prepare: To lock in today’s comparatively low rates, get a mortgage preapproval on the longer side — say, 45 to 60 days. That’ll lock in your rate through the more active months of March and April, giving you some peace of mind.
Nerdy Perspective
What’s the best time of year to buy a house?
March is an ideal time to take your house hunt from “casual” to “official.” Right now, listing activity is slow, so buyers can take their time to make a decision — a nice perk if you’re just starting your search.But as I said in a recent episode of NerdWallet’s Smart Money podcast, the spring buying season heats up sooner than you think. More inventory usually brings more competition, so there’s no time like the present to jump in.
Lots of different forces affect the housing market. Skip ahead to read about:
Weekly average mortgage rates
Mortgage rates went up a little this week.
The interest rate on a 30-year fixed-rate mortgage averaged 6.15% annual percentage rate (APR) for the week ending March 18, up six basis points from last week, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of 1%.
Average weekly mortgage rates
| Mortgage type | APR |
|---|---|
| 30-year fixed mortgage | 6.15% |
| 15-year fixed mortgage | 5.66% |
| 5-year adjustable | 6.48% |
Averages are for the week ending March 18, 2026, according to rates provided to NerdWallet by Zillow.
🤓 Nerdy Tip
Each mortgage lender sets their own rates and fees. Compare offers from at least three mortgage lenders to get the best deal. Rate shopping can save you thousands of dollars over the life of the loan. To learn more about mortgage rates, check out these resources from NerdWallet:
- 📍 Right now: Mortgage rates today
- 📈 Looking ahead: Mortgage interest rates forecast
- 🤔 Shopping around: How to get the best mortgage rate
How do mortgage rates affect housing costs?
When mortgage rates are high, your home buying budget doesn’t stretch as far. Let’s say you’re prepared to make a 20% down payment on a $350,000 house. Here’s what your monthly payments would look like at different interest rates:
| Interest rate | Monthly principal + interest* |
|---|---|
| 5% | $1,503 |
| 5.25% | $1,546 |
| 5.5% | $1,590 |
| 5.75% | $1,634 |
| 6% | $1,679 |
| 6.25% | $1,724 |
| 6.5% | $1,770 |
| 6.75% | $1,816 |
| 7% | $1,863 |
| 7.25% | $1,910 |
| 7.5% | $1,958 |
*For a 30-year fixed-rate mortgage. Does not include homeowners insurance or property taxes.
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Inflation and the economy
Is it a bad time to buy a house? From higher gas prices to a tough job market, headlines about the economy might make you feel rattled. It’s normal to feel worried about making a long-term financial commitment right now. Here’s how to stay grounded:
- 🤔 Consider pausing: If your finances feel shaky — for example, you’re worried about job security or paying bills — it’s wise to hold off.
- 😌 Stay the course: If your income is steady and your budget says the numbers work, don’t let scary “what if” headlines throw you off track.
Did you know...
The Federal Reserve, the nation’s central bank, indirectly influences interest rates on all loans (including mortgages). On March 18, policymakers kept the federal funds rate the same. We’ll find out the Fed’s next move at its upcoming meeting, April 28-29. Is it a buyer’s or seller’s market?
Nationally: Seller’s market (moderate), but your region may vary
National trends show sellers still having a slight advantage. But all real estate is local. What’s happening in your area might be different than the numbers you see here — sometimes vastly so. Some markets, particularly in the South and West, are seeing higher inventory and price declines right now.
🤓 Nerdy Tip
If you’re serious about buying, start by finding a local buyer’s agent. Someone familiar with your city, town or neighborhood can help you know what to expect in your area. Read our advice on how to choose a real estate agent. What’s the difference between a buyer’s market and a seller’s market?
Whether you're in a buyer’s or seller’s market comes down to supply and demand. Available inventory affects who has the upper hand in negotiations.
- 📈 Buyer’s market = high inventory. Buyers have lots of choices and can take their time. Price cuts are common. Buyers might ask sellers to cover some costs or fees.
- 📉 Seller’s market = low inventory: Buyers have fewer choices. Prices and competition heat up. Expect multiple offers above asking price.
- ⚖️ Balanced market = enough homes to go around: Supply and demand are roughly even. This generally happens when the real estate market has about six months’ worth of available inventory.
Did you know...
When a house is listed for sale, it becomes “inventory.” Inventory is measured as a number of months’ supply at the current sales pace. A six-month supply means it would take six months to sell all listed homes, if no new ones came on the market. Let’s dig into national averages using February 2026 data from the National Association of Realtors (NAR). Take these numbers with a grain of salt. National trends are useful for a quick gut check, but if you’re serious about buying, what’s happening in your local market matters most.
Inventory: Slowly thawing after a long winter’s nap
Seasonally, the inventory of homes listed for sale tends to tick back up again starting in February, following the housing market’s typical winter slowdown.
We’re off to a slow start in February, but inventory is slowly trickling on the market. Total housing inventory rose 2.4% from January to February, to a total of 1.29 million units.
Measured in months’ supply, that number is roughly flat month over month. There was a 3.8-month supply of homes for sale in both January and February. However, it’s higher than this time last year — February 2025 had a 3.6-month supply of homes for sale.
Home prices: Flattening, but still an upward trend
Meanwhile, home prices continue to inch higher, although growth has slowed considerably compared to previous months. Nationally, year-over-year home prices have risen every month for 32 straight months.
The national median price for existing homes sold in February was $398,000, up 0.39% from February 2025, according to the NAR.
While that’s technically an all-time high for the February median sales price, the rate of growth is just a fraction above zero.
“It’s a very, very small change,” Lawrence Yun, NAR’s chief economist, said on a March 10 press call. “So, any time when you have home prices essentially not changing from one year ago, it's implying that roughly half the country is probably seeing some price decline, while the other half of the country is seeing some price increase.”
Year-over-year price changes differed across the four U.S. regions — Midwest, Northeast, South and West. Here’s a breakdown of median housing prices by region:
- Midwest: $302,100, up 2.3%
- Northeast: $479,800, up 3.3%
- South: $356,800 up 0.2%
- West: $603,100, down 1.9%
🤓 Nerdy Tip
Buying a house is expensive up front, but it can help you build long-term wealth. Try our rent vs. buy calculator to compare costs over time and see your break-even point. Home sales: Off to a slow start, despite lower rates
Sales of existing homes rose 1.7% from January to February. However, they slid 1.4% compared to one year ago. February is still a traditionally slow month before the start of the busy spring homebuying season, so it’s too early to tell if this meager activity is just seasonal or the sign of a larger trend.
Meanwhile, the average rate on a 30-year fixed-rate mortgage fell below 6% in February, hitting its lowest level in more than three years. This provided welcome relief to those looking to stretch their homebuying dollar. With all this pent-up demand, you’d expect lower mortgage rates to bring a rush of buyers to the market — but that’s not what we saw last month.
“Housing affordability is improving, and consumers are responding,” Yun said in a press release. “Still, there is a long way to go to return to pre-pandemic levels of transaction activity. There are more than 6 million more jobs than in 2019, yet home sales per year are down by one million.”
In other words: Lower mortgage rates may have nudged some buyers back into the market, but many others are still on the sidelines due to high prices and a shortage of homes for sale.
Competition: Easing up
The February 2026 Realtors Confidence Index, a survey of the NAR’s members, highlights recent trends real estate agents are seeing in their local markets that are easing the competition among buyers. Some shifts to note:
- Bidding wars aren’t the norm. A home listed for sale received an average 2.3 offers in February, the same as last year and up from 2.2 offers last monthFor context: In the era of hot bidding wars in 2021 and 2022, the average was around five offers per home.
- Fewer homes are selling above list price. In February, 14% of homes sold above listing price, down from 16% last month and 21% last year.
- Homes are staying on the market longer. Houses stayed on the market for a median 47 days in February, up from 46 days last month and 42 days last year.
Overall, though, demand still outpaces supply. This is hardly a mellow market: Good homes sell quickly, and buyers should still expect competition out there.
» MORE: How to buy a house, step by step
Should I buy a house now or wait?
Ultimately, whether it’s a good time to buy comes down to your personal financial readiness. If your credit score needs work or you’re in major debt, consider tackling those goals first. You also need to be emotionally ready for the commitment of owning a house.
Here are some green flags that it’s a good time to buy.
- ✅ Stability: You have steady income and employment, and you’re ready to stay in one place for several years.
- ✅ Lifestyle fit: For first-time buyers, you’re up for the responsibility of paying for maintenance and repairs. For repeat buyers, your current home no longer meets your needs: You’re ready for more space, a new neighborhood or to downsize.
- ✅ Savings: You'll need money for a down payment and closing costs, as well as for moving costs and other expenses.
- ✅ Low debt: Your debt-to-income ratio (DTI) shows how much of your monthly income goes toward paying debt (like student loans, car payments or credit cards). The lower your DTI, the better your mortgage rates and terms. A DTI of 36% or below is most attractive to lenders.
- ✅ Good credit score: Borrowers with credit scores of 740 and above get the best mortgage rates and terms. It’s possible to qualify with a score in the 600s, but your options are limited.
» MORE: Home loans for bad credit
The takeaway: If you’re ready to buy, jump in now
Don’t try to time the market perfectly. National trends can be unpredictable, but if you’re in a good spot, that’s what matters most. Do you have a stable income, solid savings and a desire to settle down? You can find a way to make it work.
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