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Originally posted on: David Denenberg

In a housing market where new mortgage rates are still hovering in the 6% range, some buyers are finding a very different path to affordability: assumable mortgages. Instead of taking out a brand-new loan at today’s higher rates, these buyers are stepping into a seller’s existing government-backed mortgage, often with an interest rate that starts with a 3. That kind of financing edge can dramatically change the monthly payment math in 2026. 

The catch is that assumptions are not magic. They work best when the seller’s remaining loan balance is still large enough to cover a meaningful portion of the purchase price. Buyers also need a plan for the equity gap, which is the difference between the price of the home and the balance of the assumable loan. That gap may require cash, a second loan, or another financing strategy, and if it is not handled well, it can erase the savings that made the deal attractive in the first place. 

Still, in a rate-locked market where many owners do not want to give up their low mortgage rates, assumable loans have become one of the more interesting buyer strategies of 2026. The buyers who benefit most are the ones who know where to look, ask the right question early, and build a smart team that understands the process. In many cases, the opportunity is not hidden in the listing itself. It is hidden in the financing attached to it. 

Key takeaways:

Assumable mortgages are becoming a bigger buyer strategy in 2026. 

In the right deal, a buyer can take over a seller’s existing low-rate mortgage instead of starting fresh at current market rates. 

FHA, VA, and USDA loans are typically the most likely to be assumable. 

Most conventional mortgages are usually not assumable because of due-on-sale clauses. 

The larger the assumable loan balance relative to the purchase price, the more powerful the affordability advantage can be. 

Buyers still have to qualify through underwriting, so assumptions are not automatic. 

The equity gap is often the biggest challenge in making an assumable deal work. 

Servicer delays and paperwork friction can stretch the timeline longer than a standard loan closing. 

A poorly structured second loan can reduce or erase the savings from the assumed mortgage. 

In 2026, assumable mortgages are one of the clearest examples of buyers using financing strategy to compete in a rate-locked market. 

FAQ

What is an assumable mortgage? It is a mortgage that allows a buyer to take over the seller’s existing loan, including its interest rate, remaining balance, and remaining term, subject to approval. 

Which loans are most commonly assumable? FHA, VA, and USDA loans are the main loan types typically associated with mortgage assumptions. 

Do buyers still have to qualify? Yes. Assumable does not mean automatic. Buyers still go through underwriting and must meet the lender or servicer’s approval standards. 

What is the “equity gap”? It is the difference between the home’s purchase price and the remaining balance on the assumable loan. Buyers need a clear plan to cover that amount. 

Why are assumable mortgages getting more attention in 2026? Because today’s market rates are much higher than the low rates many sellers locked in during earlier years, making those older loans especially valuable. 

Originally posted on: David Denenberg

The 2026 housing market is not giving buyers and sellers a dramatic crash or a major boom. Instead, it is creating a reset. Mortgage rates are trending lower, but not low. Home prices are holding firmer than many hoped. And at the same time, new rules around buyer representation and agent compensation are making the transaction process feel more explicit, more negotiable, and sometimes more confusing for consumers. 

A big theme in this article is that 2026 is becoming a payment-first market. Buyers are being pushed to think less about chasing the perfect interest rate and more about structuring a deal that works comfortably at today’s monthly cost. That means watching not just list price, but also credits, buydowns, concessions, cash-to-close, and whether new construction might actually beat resale once incentives are factored in. Sellers, meanwhile, need to stop relying on old pricing expectations and start responding to the reality that today’s buyers are far more sensitive to payment and terms. 

The article also highlights how representation agreements and commission conversations are now a much more visible part of the process. Compensation is still negotiable, but less is assumed. For first-time buyers, move-up buyers, and investors alike, the advantage in 2026 belongs to people who prepare early, understand the structure of the deal, and make decisions based on math instead of headlines. 

Key takeaways:

The 2026 housing market is being framed as a reset year, not a crash or boom year. 

Mortgage rates are lower than recent highs, but they are still not low enough to erase affordability concerns. 

Buyers should focus on monthly payment first, then negotiate around price and terms. 

Home prices may stay sticky even as affordability improves only gradually. 

Inventory is expected to thaw slowly as life events loosen the lock-in effect. 

New construction can sometimes outperform resale because builder incentives act like “shadow discounts.” 

Sellers need to be realistic about pricing and open to concessions, credits, or buydowns. 

Representation agreements and compensation conversations are now a more visible part of the buying process. 

Commission structures may vary more from deal to deal, making early clarity important. 

In 2026, leverage is increasingly local, situational, and tied to preparation. 

FAQ

What does “housing market reset” mean in 2026? It means the market is moving into a more practical middle ground, with softer rate pressure, slower price growth, more negotiation, and different transaction rules than buyers were used to in past years. 

Why is a payment-first strategy so important right now? Because even if prices stay sticky, small shifts in rates, credits, and concessions can meaningfully change the monthly cost of owning a home. 

Are buyers getting more leverage in 2026? In many areas, yes. Buyers may see more listings, more terms negotiation, and more concession opportunities, especially on homes that are overpriced, dated, or sitting longer on the market. 

Why might new construction beat resale? Builders can often offer incentives like rate buydowns, closing credits, and upgrades that improve the net monthly cost even if the sticker price looks higher. 

How have commission conversations changed? They are becoming more direct and more visible. Buyers are more likely to sign representation agreements earlier, and compensation is less assumed and more openly negotiated. 

Originally posted on: David Denenberg

A lot of housing anxiety in 2026 comes down to one idea: 6% mortgage rates may be the new normal. But that does not automatically mean the market is broken. In this article, David Denenberg frames 2026 less as a crash year or boom year and more as a reset year, where buyers, sellers, and investors have to stop chasing old conditions and start making smarter, more grounded moves based on today’s payment realities. 

That reset is showing up in several ways. Mortgage rates have eased from a year ago, price growth has slowed into a more muted range, and negotiation is starting to matter again in many markets. Buyers are no longer forced to waive everything just to compete, and sellers cannot rely on peak-era assumptions if their home is overpriced, stale, or poorly prepared. Instead of waiting for miracle rates or dramatic crashes, the better strategy is learning how to use concessions, credits, pricing discipline, and timing to make deals work. 

The key takeaway is that 2026 may actually be a more usable market than the chaos of recent years. Buyers should focus on payment comfort and deal structure, sellers should price and prepare more strategically, and investors should underwrite conservatively without depending on a quick refinance story. This is not a market for hype. It is a market for planning, patience, and practical leverage. 

Key takeaways:

David Denenberg describes 2026 as a housing reset year, not a crash year or a boom year. 

Mortgage rates around 6% are being positioned as manageable if buyers and sellers adapt their expectations. 

Price growth is slowing, which can create a more negotiable and less emotional market. 

Buyers should focus on payment, credits, concessions, and structure instead of obsessing over headline price alone. 

Stale listings and mispriced homes may offer some of the best opportunities in 2026. 

Sellers need to be realistic about pricing, condition, and what today’s payment-sensitive buyers will accept. 

Pre-listing repairs, strategic pricing, and targeted concessions can help sellers protect their net proceeds. 

Investors should underwrite as if current rates will remain, treating any future refinance as upside rather than a necessity. 

Local listing velocity, days on market, and price cuts matter more than national headlines when making decisions. 

In 2026, preparation and negotiation are becoming real advantages again. 

FAQ

Why does David Denenberg call 2026 a “reset” year? Because the market appears to be normalizing. Price growth is softer, bidding wars are more selective, and negotiation is returning in many areas. 

Are 6% mortgage rates really not that bad? The article argues that stable rates near 6% may be easier to work with than a market driven by constant volatility, especially if buyers structure deals carefully. 

What should buyers focus on most in 2026? Buyers should pay close attention to monthly payment, credits, seller concessions, inspection leverage, and the long-term affordability of the home. 

What kinds of homes may offer the best opportunity? Mispriced listings, stale properties, and homes that have fallen out of contract may offer more flexibility for buyers willing to do their homework. 

What should sellers do differently in this market? They should focus on smart pricing, fixing deal-killing issues before listing, and using concessions strategically instead of relying on outdated comps. 

Originally posted on: David Denenberg

The 2026 housing market is pushing more people to rethink what “home” looks like. With mortgage rates still hovering around 6%, affordability remains strained, existing-home inventory is tight, and many would-be buyers are still stuck on the sidelines. That is one reason build-to-rent communities are getting so much attention right now. These developments offer newly built single-family homes designed specifically for renters who want more space, neighborhood amenities, and a house-style lifestyle without taking on a mortgage. 

Build-to-rent, or BTR, is not just another housing trend. It is becoming a bigger part of the housing conversation because it sits right at the intersection of affordability pressure, demographic change, and investor strategy. Millennials and Gen Z renters are showing strong demand for homes that feel more like traditional neighborhoods, while developers and investors see BTR as a way to meet that demand at scale. New federal policy changes discussed for 2026 may also make BTR even more attractive by limiting certain large-investor activity in traditional home buying while carving out space for build-to-rent development. 

For renters, that could mean more options. For buyers, it could mean more competition over the long term if ownership becomes harder to access. For local communities, it raises bigger questions about affordability, neighborhood stability, and the future balance between renting and owning. The takeaway is that BTR is no longer a side story. It is becoming one of the clearest signals of how the housing market is adapting to a generation that wants space, flexibility, and access in a market where buying still feels out of reach. 

Key takeaways:

Build-to-rent communities are becoming a major part of the 2026 housing conversation. 

These communities consist of newly built single-family homes designed specifically for renters. 

Mortgage rates near 6% and affordability pressure are pushing more households toward renting. 

Tight existing-home inventory continues to keep many would-be buyers on the sidelines. 

Demand for single-family rentals has reached a multi-year high. 

BTR appeals to renters who want more space and neighborhood-style amenities without homeownership costs. 

Federal policy changes in 2026 may steer more capital toward build-to-rent development. 

Millennials and Gen Z are helping drive demand for flexible, house-style rental living. 

BTR may create opportunities for renters, but it also raises concerns about long-term homeownership access. 

The growth of BTR could reshape local housing markets, investment patterns, and community dynamics. 

FAQ

What is build-to-rent? Build-to-rent refers to entire communities of newly constructed single-family homes that are designed specifically for renters rather than homebuyers. 

Why is build-to-rent growing in 2026? Because mortgage rates, affordability problems, and tight inventory are making homeownership harder to reach for many households, increasing demand for high-quality rental alternatives. 

Who is most interested in these communities? Many millennials and Gen Z renters are drawn to build-to-rent because it offers more space, amenities, and neighborhood living without the responsibility of owning. 

How could federal policy affect build-to-rent? The article explains that 2026 policy changes aimed at large institutional investors may include carve-outs that make build-to-rent communities more attractive for development and investment. 

Are build-to-rent communities good for renters? They can be, especially for renters who want a home-style environment, but it is still important to evaluate lease terms, fees, maintenance responsiveness, and management quality. 

Originally posted on: David Denenberg The 2026 real estate market is not easy to read at a glance. Mortgage rates are hovering around the important 6% mark, inventory has improved from extreme lows, and commission rules have changed enough to reshape how buyers and sellers approach transactions. Even with some encouraging signs, affordability remains a challenge and inventory is still tight compared with pre-pandemic conditions. That is why so many people still feel stuck, uncertain, or hesitant about their next move. 

One of the biggest forces in the market is the ongoing lock-in effect. Homeowners with ultra-low mortgage rates are staying put, which limits mobility and keeps new listings constrained. That helps explain why home prices have not collapsed despite higher rates and affordability pressure. At the same time, newer commission rules and mandatory buyer-broker agreements are changing how consumers work with agents, making fee conversations more visible and more negotiable than before. 

Beyond traditional homebuying, 2026 is also seeing important shifts in rentals and commercial real estate. Single-family rentals are gaining traction as more buyers get priced out of ownership, and institutional interest in build-to-rent communities is growing. In commercial real estate, some sectors are recovering better than others, with industrial and multifamily showing more resilience while office space remains highly uneven. The bigger message is clear: this market rewards people who stay informed, ask better questions, and adapt to changing conditions instead of relying on old assumptions. 

Key takeaways:

Mortgage rates near 6% are improving slightly, but affordability is still a major concern. 

Tight inventory continues to support home prices and reduce the chance of a major crash. 

The lock-in effect is keeping many homeowners from selling and limiting new supply. 

Buyer-broker agreements are now a more important part of the homebuying process. 

Commission conversations are still part of real estate, but they are now more transparent and negotiable. 

Buyers need to be more proactive in understanding agent value, services, and fee structures. 

Single-family rentals are becoming more popular as affordability barriers keep some buyers out of the ownership market. 

Institutional build-to-rent activity is becoming a more important force in residential housing. 

Commercial real estate is recovering unevenly, with some sectors doing better than others. 

In 2026, success in real estate depends on flexibility, research, and informed negotiation. 

FAQ

Why are home prices still holding up in 2026? A major reason is limited inventory. Many homeowners are staying put because they do not want to lose their low mortgage rates, which keeps supply constrained. 

What is the lock-in effect? It refers to homeowners choosing not to move because their existing mortgage rate is much lower than current borrowing costs. 

Have real estate commissions gone away? No. They still exist, but the structure and visibility around them have changed, making them more transparent and more open to negotiation. 

Why are buyer-broker agreements getting so much attention? Because they now play a more central role in how buyers work with agents and define compensation, services, and expectations more clearly. 

Why are single-family rentals growing in popularity? Because many would-be buyers are facing affordability pressure and are turning to rentals that offer more space and flexibility. 

Originally posted on: David Denenberg Homebuyers in 2026 are entering a market that feels more active again, but the rules around representation have changed. With mortgage rates dipping below 6% and competition still strong in many areas, buyers need to understand that working with an agent is no longer something they can treat casually. Buyer agreements now play a much bigger role, especially after the rule changes that reshaped how buyer-agent compensation is handled. 

At the center of this shift is one major reality: buyers can no longer assume their agent’s compensation is automatically covered the old way. A buyer agreement is a real contract that spells out services, compensation, exclusivity, and when payment may be owed. That means buyers should ask better questions up front, understand whether fees could come out of pocket, and explore whether seller concessions can help offset those costs. 

The smartest approach in 2026 is to treat a buyer agreement like any other serious professional contract. Read it closely. Watch for red flags. Clarify the fee structure. Understand the exit terms. Buyers who go into these conversations informed are better positioned to protect their interests, negotiate intelligently, and avoid surprises later in the process. In a market with tight inventory and ongoing affordability pressure, preparation matters more than ever. 

Key takeaways:

Buyer agreements are now a much more important part of the homebuying process. 

Buyers should not assume their agent’s services are automatically “free.” 

Compensation may depend on the agreement, the seller’s position, and the structure of the deal. 

Buyers need to understand what services are included before signing. 

Important terms include exclusivity, payment triggers, fee structure, and termination rights. 

Seller concessions may still help offset buyer-agent costs in some deals. 

Flat-fee, hourly, and percentage-based compensation structures may all show up in 2026 transactions. 

Red flags include vague payment language, broad exclusivity, and unclear exit options. 

Tight inventory and renewed buyer activity make informed negotiation even more important. 

A well-informed buyer is in a stronger position to protect both budget and flexibility. 

FAQ

What is a buyer agreement? It is a contract between a homebuyer and an agent that defines representation terms, services, compensation, and other key obligations. 

Do buyers have to pay their agent directly now? Sometimes. In some deals, the buyer may need to pay directly, while in others compensation may still be covered through concessions or other negotiated structures. 

What should buyers ask before signing? They should ask what services are included, how compensation is calculated, when payment is due, whether seller concessions can help, and how the agreement can be terminated. 

What are common red flags in buyer agreements? Watch for overly broad exclusivity clauses, unclear payment triggers, and language that could leave the buyer owing fees unexpectedly. 

Why does this matter so much in 2026? Because buyer representation is no longer something many people can take for granted, and inventory remains tight enough that buyers need a smart, prepared strategy. 

Originally posted on: David Denenberg

Real estate commissions did not disappear, but the way they are handled has changed in a big way. In 2026, buyers and sellers need to understand a newer landscape shaped by the NAR settlement, where written buyer-agent agreements are required before home tours and blanket compensation offers can no longer be displayed on the MLS. That means more of the commission conversation now happens through direct negotiation, buyer agreements, seller concessions, and purchase-contract strategy. 

For buyers, that creates more responsibility early in the process. Before touring homes, they may need to sign an agreement that defines the agent’s term length, exclusivity, compensation, cancellation rights, and when fees are actually owed. That makes it more important to read the fine print and watch for red flags like long exclusivity periods, vague fee triggers, and harsh termination clauses. 

For sellers, the shift means being more flexible and more informed. Some buyers may ask for concessions to help cover their agent’s fee, while others may structure offers differently depending on the local market. In slower markets, those concessions may help attract a broader pool of buyers. In tighter markets, sellers may have more room to refuse. The key in 2026 is not assuming the old rules still apply. It is understanding the structure of the deal, asking better questions, and negotiating with more clarity from the start. 

Key takeaways:

Written buyer-agent agreements are now a major part of the home-buying process before tours begin. 

Blanket commission offers can no longer be advertised on MLS fields the way they once were. 

Buyers need to understand exactly how their agent will be paid and when that payment is triggered. 

Important agreement terms include duration, exclusivity, compensation, cancellation rights, and scope of representation. 

Red flags include long lock-in periods, broad procuring-cause language, vague fee language, and unjustified admin fees. 

Buyers may negotiate through seller concessions, direct payment, hybrid fee models, or other deal structures. 

Sellers should evaluate how different concession options affect their net outcome. 

Real estate commissions are still legal and common, but they are now more openly negotiated. 

Market conditions still influence leverage, flexibility, and how fees are handled. 

In 2026, success depends on clarity, transparency, and stronger negotiation skills from both sides. 

FAQ

Do buyers have to sign something before touring homes now? In many cases, yes. A written buyer-agent agreement is generally required before a buyer represented by a REALTOR® or MLS participant tours homes. 

Are realtor commissions illegal now? No. Compensation is still part of real estate transactions, but it is now handled differently and negotiated more directly. 

Can buyers still ask sellers to help cover agent fees? Yes. One common strategy is requesting a seller concession that helps offset the buyer-agent fee or related closing costs. 

What should buyers look for in a buyer agreement? They should review the term length, exclusivity, compensation method, fee triggers, cancellation terms, and the exact scope of the agreement. 

What are common red flags in these agreements? Watch for long exclusivity periods, unclear compensation triggers, broad procuring-cause language, and large fees that are not clearly justified. 

Originally posted on: David Denenberg On paper, the 2026 housing market looks better than it did a year ago. Mortgage rates have eased, inventory is no longer completely frozen, and buyers have a bit more leverage in some areas. But that does not mean the market feels easy. Many first-time buyers still feel priced out, and many current homeowners remain reluctant to sell because they do not want to give up the low mortgage rates they already have. That tension is a big reason the market still feels broken, even while some key metrics are improving. 

Another major issue is that national headlines do not tell the whole story. Some Sun Belt markets are cooling, while parts of the Midwest and Northeast are seeing stronger resilience and even continued appreciation. Buyers may see more listings, but the total cost of ownership still feels heavy once mortgage payments, taxes, insurance, and wage pressure are factored in. In that kind of environment, “better” does not always feel affordable. 

The smarter 2026 approach is patience. Buyers may benefit from comparing more options, negotiating for credits or upgrades, and considering new construction where builders are more flexible. Sellers may need to move more carefully too, especially if they are weighing the emotional and financial cost of leaving a low-rate mortgage behind. This is less a healed market than a thawing one, and success depends on staying informed, selective, and realistic. 

Key takeaways:

The 2026 housing market is improving statistically, but many buyers and sellers still feel stuck. 

Mortgage rates are lower than last year, but they remain high enough to keep monthly payments painful for many households. 

The “rate lock” effect is still limiting housing mobility because many owners do not want to trade their low-rate mortgage for a higher one. 

More sellers than buyers does not automatically mean homes feel affordable. 

Regional differences matter, with some Sun Belt markets cooling while parts of the Midwest and Northeast stay more resilient. 

The market is better described as thawing than fully healing. 

New construction may offer opportunities because builders are often more willing to negotiate on pricing and incentives. 

Buyers should focus on patience, comparison shopping, and negotiating strategically. 

Sellers should think carefully about timing, motivation, and what they are giving up financially by moving. 

In 2026, emotion and affordability remain just as important as the headline numbers. 

FAQ

Why does the housing market still feel bad if conditions are improving? Because lower rates and more inventory do not automatically fix affordability. Buyers are still dealing with high ownership costs, and sellers are still hesitant to move. 

What is the “rate lock” effect? It is when homeowners avoid selling because they do not want to give up the lower mortgage rate they already secured in prior years. 

Are buyers gaining any advantage in 2026? Yes, in some markets buyers have more leverage because inventory is less constrained and seller-buyer dynamics have shifted somewhat in their favor. 

Are all parts of the country moving in the same direction? No. Some regions, especially parts of the Sun Belt, are cooling, while certain Midwest and Northeast markets are holding up better. 

Is new construction worth considering? Yes. New homes may offer better opportunities for buyers because builders are often more flexible with pricing, upgrades, and financing incentives.