New Analysis Reveals Unchanged Charges While Prices Climb
Mortgage rates are projected to remain stable throughout 2026, with forecasts indicating little change from current levels. Fannie Mae anticipates the average 30-year fixed rate to decline slightly to 5.9% by year-end, while the Mortgage Bankers Association expects rates to hold at 6.4%.
Home price increases have slowed, showing regional disparities: markets in Michigan, West Virginia and Ohio reported double-digit annual gains, while several Florida areas experienced notable declines. Escalating escrow costs, including property taxes and insurance, rose 45% nationwide from 2020 to 2025, with Florida seeing a 70% increase over the same period.
Rental market conditions continue improving, with median rents falling year-over-year for 26 consecutive months as of September 2025. New built-to-rent communities are expanding in suburban Sun Belt areas, offering apartment-style housing in single-family formats.
Home equity levels remain high, with the average mortgage holder holding $204,000 in tappable equity as of late 2025. Despite this, significant growth in home equity borrowing is unlikely in 2026, as equity decreased 0.8% during the second quarter of 2025 and demand for such loans has not materialized as previously anticipated.