Homebuyers Have More Purchasing Power This Spring
- 4 days ago
- 4 min read
Updated: 3 days ago
As we thaw out from a long winter, spring arrives with blossoms, bluebirds — and a housing market that is shifting in favor of homebuyers. Just a year ago, affordability challenges and rate volatility resulted in buyer hesitation and low confidence. This spring, homebuyers have more flexibility, options, and buying power. Explore what that means for you … and why it’s good news for sellers, too.
Why Buying Power Is Improving
Several market shifts are contributing to increased purchasing power this spring.
Declining mortgage rates
Even modest rate declines can significantly affect monthly payments and overall affordability. This spring, mortgage industry forecasts predict more rate stability. Fannie Mae projects a gradual decline in the 30-year fixed rate to around 5.9% by the end of 20261, while the Mortgage Bankers Association expects rates to hold closer to 6.4%.2 Barring any unexpected economic shifts, buyers can expect rates to hover in the mid-to-low 6% range, with the potential to ease further.
Rising housing inventory
Having more choices makes a difference. In late 2025, active listings grew by 20.9% year over year, marking a multi-year streak of inventory growth that exceeded 1 million active listings for the first time since winter 2019.3 As of January 2026, listings continued to grow, albeit at a slower pace of 10% year over year.4 More listings on the market means less competition and more home options for buyers.
Easing or stabilizing home prices
Home prices rose just 0.6% in 2025 — the smallest calendar‑year increase since 2011.5 Prices have continued to ease into early 2026, though trends vary by region. As of January, nearly 40% of markets (largely in the South and West) recorded year over year price declines, while the remaining 60% of markets (the Northeast and Midwest) posted gains.5 Looking ahead, Zillow projects growth of 1.9% for 2026, finally trailing behind wage growth.6 This gradual cooling of home prices eases pressure on buyers and helps restore confidence in making a move.
Beyond The Price Tag: What Greater Buying Power Really Means
With more listings available, buyers can focus on finding homes that truly fit their needs, potentially shortening their search. Lifestyle priorities such as a shorter commute, a better school district, or that extra bedroom may now be within reach.
Perhaps the best advantage is stronger negotiating leverage. From home price to closing costs and repairs, buyers have more room to negotiate. That flexibility can make a significant difference when making an offer.
Why Sellers Can Also Benefit
Do advantages for buyers spell disadvantages for sellers? Not necessarily. While homes are no longer selling at pandemic-era premium prices, sellers can still get a good deal by pricing competitively. And while buyers now have more options, improved affordability means more of them are financially ready to make offers when they find the right home — giving sellers a healthier pool of qualified, motivated buyers than last spring. For sellers who are also buyers, lower rates can make upgrading possible without stretching finances.
The Math Behind Purchasing Power
Here’s a simplified example based on a purchasing power analysis, assuming a fixed monthly budget and 20% down payment.
*The sample rates shown are neither an advertisement, an estimate, nor an offer to lend. Rates are for illustrative purposes only. The annual percentage rate (APR) is the cost of credit over the term of the loan expressed as an annual rate. The APR shown assumes a 1% origination fee, $1,000 in other fees, and pre-paid (per diem) interest calculated at the 30-year fixed mortgage rate for 15 days. Monthly payment reflects principal and interest only and does not include applicable taxes and insurance. Rates, terms, and eligibility vary by borrower and are subject to change. This is not a commitment to lend.
In this example, easing rates can afford buyers roughly $32,300 more in home price while keeping the same monthly budget. That additional purchasing power could translate to a better location, more space, or upgraded amenities — options that may not have been possible just a year ago.
Spring Into Action
A clearer picture of the current market gives buyers the confidence to move forward. Consider these next steps:
Get pre-qualified to understand your true buying power
Explore loan options and programs
Partner with a knowledgeable local agent
Create a must-haves vs. nice-to-haves list
Monitor the market — conditions can shift quickly!
With more purchasing power and more choices this spring, buyers can let go of any hesitation and turn today’s market shift into a real opportunity.
Sources:
[1] Fanniemae.com, “Mortgage Rates Expected to Move Below 6 Percent by End of 2026,” September 23, 2025.
[2] Mortgage Bankers Association, “MBA Forecast Commentary,” July 2025.
[3] Realtor.com, “August 2025 Monthly Housing Market Trends Report,” September 8, 2025.
[4] Realtor.com, “January 2026 Monthly Housing Market Trends Report,” February 5, 2026.
[5] ICE Mortgage Monitor, February 2026.
[6] Zillow.com, “Home Value and Home Sales Forecast,” January 22, 2026.