Mortgage Rate Drops in 2026

Mortgage rates in 2025 were off-putting, particularly after they reached 7% in January. While they moderated to some degree, they remained high enough to keep many potential buyers out of the housing market. However, for 2026, mortgage rates are forecast to drop to 6%, opening up the market to potentially more than 5 million home buyers. If you’ve been keeping an eye on rates in order to purchase one of the homes for sale in Grand Forks, now might be a good time to investigate your housing options before more competition joins the house hunt.

According to the National Association of REALTORS® (NAR), the likelihood of mortgage rates falling to 6% this year is based on a variety of factors. Among them are the recent cuts by the Federal Reserve to its short-term interest rates, inflation trends, and movements in the 10-year Treasury yield. These actions aren’t a guarantee, but based on historical trends and activity, these can lead to a lowering in mortgage rates.

Recent years have seen mortgage rates and home prices skyrocket, from roughly 3% to 7%, resulting in mortgage payments increasing by $1000 or more per month. Homeowners with affordable rates locked in preferred the financial security of their current payments over potentially much higher rates, despite any need for new homes.

Now, with rates lowering and likely to go even lower, current home owners and first-time potential home owners are starting to explore their options. With more homes coming on the market, as well as more new homes being built, it’s becoming easier to find a home that meets your current spatial and layout needs, while also fitting your financial situation. With current rates closer to 6.25%, monthly payments are hundreds of dollars less than they were at the start of last year.

As mortgage rates began to improve in the fall of 2025, house sales suddenly began to increase and that could continue into 2026 with the current mortgage predictions. However, with more people entering the market, you could end up facing more competition. Starting a serious home search now can get you out ahead of others joining the search, especially if you start before the typical spring increase. Acting now could see you ultimately saving money, even with a slightly higher rate if you’re not having to compete against other buyers, which could drive up prices.

By starting your search and mortgage research now, you’re better situated to act fast should rates drop further. At Crary Real Estate, we have a range of homes for sale in Grand Forks, so we invite you to get in touch today to explore your options so you can make the most of future mortgage rate drops.

Categorised in: Advantages of Building a New Home, Benefits of Twin Homes, Community Profile, Mortgage Rate Drops in 2026

This post was written by Crary Real Estate