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?
The housing market rarely gives buyers everything they want at once. The key is making a plan around today’s conditions.
Here’s what we’re noticing right now, for better or worse:
- ❌ Rising home prices are squeezing buyers’ budgets.
- ❌ Stubbornly high inflation is pushing mortgage rates upward.
- ✅ Nationally, the months’ supply of homes for sale reached its highest level in 10 years.
- ✅ Price cuts are becoming more common as the summer market cools.
Nerdy Perspective
What’s the best time of year to buy a house?
Fall can be a sweet spot for home buyers looking for a deal. You may have fewer new listings to choose from than during the summer rush, but there are fewer buyers out there competing with you, too. And as homes sit on the market longer, sellers may be more willing to negotiate on price, repairs or other concessions.
Lots of different forces affect the housing market. Skip ahead to read about:
Weekly average mortgage rates
Mortgage rates are up this week.
The interest rate on a 30-year fixed-rate mortgage averaged 6.74% annual percentage rate (APR) for the week ending Sept. 10, up six basis points from last week, according to rates provided to NerdWallet by Zillow. (A basis point is one one-hundredth of 1%.) We calculate our weekly average using daily APRs recorded over the past five business days.
Average weekly mortgage rates
Mortgage type | APR |
|---|---|
30-year fixed mortgage | 6.74% |
15-year fixed mortgage | 6.13% |
5-year adjustable | 6.68% |
Averages are for the week ending Sept. 10, 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.
Inflation and the economy
Is it a bad time to buy a house? From higher gas prices to a stagnant job market, headlines about inflation and 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 July 29, policymakers kept the federal funds rate the same. We’ll find out the Fed’s next move at its upcoming meeting, Sept. 15-16.Is it a buyer’s or seller’s market?
Nationally: Balanced market, but your region matters more
It’s getting harder to sum up the housing market with one national headline. Conditions vary so much by city — or even by neighborhood. What you experience locally matters far more than a national average.
If you want a gut check, here’s what Realtor.com’s Q2 Market Clock, a report that analyzes the nation’s 100 largest housing markets, saw in April through June of this year.
- Nationally, the market is balanced and heading toward a buyer-friendly direction.
- Buyer’s markets are concentrated almost entirely in the South.
- Seller’s markets remain strongest across much of the Midwest and parts of the Northeast.
🤓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 explain market conditions in your area right now. 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 a local market has about six months’ worth of available inventory.
Seasonal forces affect the housing market, too. In most places, the busiest buying season runs from April through June.
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 get a pulse check on sales of existing homes using August 2026 data from the National Association of Realtors (NAR).
Inventory: Rebounding to pre-pandemic levels
Make no mistake — nationwide, there’s still a critical shortage of homes for sale. But the latest numbers from the NAR suggest buyers are gaining some breathing room as supply shifts in a buyer-friendly direction.
In August, total housing inventory grew to 1.62 million units, up 3.2% from the previous month and up 5.2% from August 2025. Notably, that’s the first time inventory topped 1.6 million units since November 2019.
“The number of months it would take to exhaust the total inventory at the current sales pace has grown to 4.9 months’ supply — its highest level in over 10 years,” Lawrence Yun, NAR chief economist, said in a news release. “The ample supply of homes for sale on the market is giving homebuyers better opportunities to negotiate.”
Unsold inventory, currently sitting at a 4.9-month supply, is up from 4.6 months last month and last year.
Home prices: Still creeping higher
Meanwhile, home prices continue to inch higher, although growth has slowed compared to previous months. Nationally, year-over-year home prices have risen every month for 38 straight months — or more than three years.
The national median price for existing homes sold in August was $429,100, up 1.6% from August 2025, according to the NAR.
Year-over-year prices increased across three U.S. regions — Midwest, Northeast and South — and declined in the West. Here’s a breakdown of median housing prices by region:
- Midwest: $340,000, up 3.3%
- Northeast: $556,900, up 4.3%
- South: $366,500, up 0.7%
- West: $619,100, down 0.2%
🤓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: Sluggish amid elevated mortgage rates
Existing home sales fell 2% from July to August, as mortgage rates continued to climb under pressure from inflation. Year over year, sales declined 1.2%.
“Mortgage rates and home sales move in opposite directions, so it's not surprising to see a mild dip in home buying activity due to high mortgage rates,” Yun said. “Still, home prices are rising, and existing home sales are actually up 1.6% year-to-date through the first eight months of the year.”
Competition: Easing up
The August 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 2.1 offers in August, basically flat from last month’s two offers per home and down from 2.5 offers per home last year. For 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 August, 16% of homes sold above list price, down from 19% last month and 20% last year.
- Homes are staying on the market for about a month. Houses stayed on the market for a median 31 days in August, up from 29 days last month and unchanged from last year.
» MORE: How to buy a house, step by step
DATA: What's the Homebuying Climate this month?
NerdWallet's Homebuying Climate Index puts a familiar weather label on how favorable conditions are for home buyers.
For August, our analysis puts the Climate Index at 53.2 out of 100, keeping the index in Partly Cloudy territory for the 49th straight month as most variables hold relatively steady.
Read more about the factors affecting this month's index to gauge how they might affect your homebuying plans.
Explore NerdWallet's Homebuying Climate Index
Proprietary research based on the latest federal data
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.
NERDY EXPERT
Chase Baysdell | Executive Loan Officer at Next Door Lending, a wholly owned subsidiary of NerdWallet
On why buyers should offer the asking price, and then ask for concessions:
“ Technically, the purchase price is irrelevant the day after you sign. It holds no value anymore. Now it's whatever somebody else wants to buy it for or what it appraises for, which is not necessarily going to be a purchase price down the road. ”
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.
» MORE: Home loans for bad credit
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