Houtan HormozianExpert on Real Estate, Finance and PropTech

Housing Market Update 🏡 Buyers Are Still Making Moves

26 May 2026 · 2 min

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1:38

In this brief market commentary, the speaker highlights that despite higher mortgage rates and economic uncertainty, buyer activity remains robust, with pending home sales rising 1.4% month‑over‑month and 3.2% year‑over‑year. At the same time, home builders are pulling back: single‑family housing starts fell sharply—the biggest decline in almost a year—driven by elevated construction costs and uncertain demand. Federal Reserve minutes reveal that officials are no longer discussing imminent rate cuts; they are monitoring inflation closely and even contemplating future rate hikes if price pressures persist. The labor market remains resilient, with low unemployment and continued low jobless claims, suggesting limited layoffs. Economists warn that inflation could climb to about 6% in Q2, which would further pressure rates and housing affordability. The overall picture is described as confusing but still offering opportunities for those who understand the dynamics and have a solid strategy. The speaker invites viewers to reach out for assistance with buying, selling, or refinancing.

Chapters

Most people don't realize this. Even with higher rates and all the economic uncertainty, buyers are still out there making moves. Pending home sales actually went up 1.4% from March to April, and they're up 3.2% compared to this time last year. So the spring market is still showing activity. At the same time, builders are getting more cautious. Single-family housing starts had their biggest drop in almost a year last month because construction costs are still high and demand feels less predictable. And honestly, this This is where a lot of people freeze. They keep waiting for the market to feel normal again. But while they're waiting, inventory changes, prices shift, and opportunities come and go. On the economy side, the latest Fed meeting minutes showed officials are no longer talking about rate cuts right now. Instead, they're watching inflation closely, and some are even considering the possibility of future rate hikes if inflation keeps climbing. We're also still seeing low unemployment numbers. Jobless claims stayed low again last week, which tells us layoffs are still relatively limited overall despite all the headlines. And economists are warning inflation could rise as much as 6% during the second quarter, which could continue putting pressure on rates and affordability. So overall, the market feels a little confusing right now, but there's still opportunity if you understand what's happening and have a solid strategy. If you have questions about buying, selling, or refinancing, feel free to reach out anytime. We're happy to help you understand your options.