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Realtor.com lowers its 2026 forecast for home price appreciation, citing slower growth

By Mark Huffman of ConsumerAffairs

• Realtor.com has lowered its 2026 home price growth forecast to 1.2%, down from 2.2%, saying prices are now expected to rise more slowly than inflation.

• Existing home sales are still projected to increase this year, but the forecast has been trimmed slightly to 4.10 million homes as elevated mortgage rates continue to restrain buyers.

• The housing market is expected to become more buyer-friendly in the second half of the year, with slower price growth, improving affordability and declining rents.

A major housing platform has issued its mid-year report on the housing market, and even though affordability remains a serious issue, the report is favorable for buyers.

Realtor.com expects the housing market to remain sluggish through much of 2026, and that may gradually favor buyers as home price growth slows, affordability improves, and sellers become more realistic about pricing.

The online real estate marketplace this week revised its forecast for existing-home price appreciation to 1.2% this year, nearly half the 2.2% increase it projected in December. Because inflation is expected to outpace home price growth, Realtor.com says home values are effectively declining in real terms, giving buyers some long-awaited relief.

Inching forward

"The housing market is inching forward as sellers reset expectations, price growth cools, and buyers gain more negotiating power," Danielle Hale, chief economist at Realtor.com, said in the report. She added that momentum should build during the second half of the year as more buyers and sellers find common ground.

Despite the softer pricing outlook, Realtor.com left its mortgage rate forecast unchanged. The company expects the average 30-year fixed mortgage rate to remain around 6.3% throughout 2026, saying a resilient economy and persistent inflation pressures have offset hopes for significantly lower borrowing costs.

The firm also modestly reduced its forecast for existing-home sales to 4.10 million, down from the 4.13 million projected at the end of 2025. Even so, that would represent a 1% increase over 2025, with sales activity expected to strengthen during the second half of the year after a slow start.

Encouraging sign

One encouraging sign for buyers is affordability. Realtor.com now expects the typical monthly mortgage payment to decline 1.9% from last year, reflecting slower home price growth and steady mortgage rates. Combined with rising household incomes, that should reduce the share of income needed for housing payments.

Inventory is also expected to continue growing, though at a slower pace than previously forecast. Realtor.com now projects the number of homes for sale will increase 3.6% this year, providing buyers with more choices while easing some of the intense competition that characterized the market in recent years.

The outlook also calls for rents to decline another 1.2% in 2026, continuing a trend that has made renting a more attractive option for many households, although the gap between renting and buying has narrowed as homeownership costs have eased somewhat.

While affordability remains a challenge, Realtor.com said first-time buyers are beginning to play a larger role in the market. They accounted for 35% of home purchases in May, up from 30% a year earlier, a sign that improving conditions are encouraging more households to make the leap into homeownership.

USPS is trying to offset declining mail volumes, inflation, and rising operating costs

By Mark Huffman of ConsumerAffairs

• The U.S. Postal Service is seeking approval to raise the price of a First-Class Mail Forever stamp from 78 cents to 82 cents beginning July 12.

• The proposed changes would increase mailing services prices by about 4.8%, pending approval by the Postal Regulatory Commission.

• Postcards, international mail, and other mailing products would also see higher prices, while the additional-ounce charge for letters would remain unchanged at 29 cents.

The U.S. Postal Service (USPS) has warned for months that it is running out of money. Its now put an exclamation point on that warning.

The USPS is proposing another round of postage rate increases, including a four-cent hike in the cost of a First-Class Mail Forever stamp, as it continues efforts to improve its financial position. The USPS last raised rates 12 months ago.

The Postal Service announced it has filed a notice with the Postal Regulatory Commission (PRC) seeking approval for new mailing service prices that would take effect July 12. If approved, the cost of a Forever stamp would rise from 78 cents to 82 cents, an increase of about 5.1%.

Overall, the proposed adjustments would raise mailing services product prices by approximately 4.8%, according to the USPS. The agency said the changes are consistent with its pricing authority under federal law and are part of its long-term financial strategy.

Whats going up

Under the proposal, several commonly used mail products would increase in price:

• First-Class Mail Forever stamp: 78 cents to 82 cents

• Metered one-ounce letters: 74 cents to 78 cents

• Domestic postcards: 61 cents to 65 cents

• International postcards and one-ounce international letters: $1.70 to $1.75

The price for each additional ounce on single-piece letters would remain unchanged at 29 cents.

The USPS also proposed price adjustments for Special Services products, including certified mail, money orders, and post office box rentals, as well as changes affecting periodicals, marketing mail, and package services. Details of those adjustments are included in the filing submitted to the PRC.

Subject to approval

The Postal Regulatory Commission must review and approve the proposed rates before they can take effect. The commission evaluates whether the changes comply with federal postal pricing laws and regulations.

The proposed increase continues a series of postage hikes in recent years as the Postal Service works to offset declining mail volumes, inflation, and rising operating costs. The USPS has said its pricing strategy is part of its long-term "Delivering for America" plan to place the agency on more stable financial footing while maintaining universal mail service.

Users also report changes in what they buy

By Mark Huffman of ConsumerAffairs

• A growing number of people taking GLP-1 weight-loss medications are spending significantly less on groceries, according to new research from Worldpanel by Numerator.

• The study estimates households with a GLP-1 user spend about $570 less on groceries each year, contributing to an estimated $1.1 billion reduction in annual grocery spending across Britain.

• The findings suggest the drugs are beginning to reshape consumer buying habits, posing new challengesand opportunitiesfor food manufacturers and retailers.

People use GLP-1 drugs such as Wegovy and Mounjaro to lose weight. But in many cases, as their waistline shrinks, their bank account grows.

According to a study by Worldpanel by Numerator, households that include someone taking a GLP-1 medication spend an average of about $570 less on groceries each year than households without a user. The British study estimates that across the United Kingdom, this translates into around $1.1 billion less annual grocery spending.

The research found that nearly 1.9 million adults in Britain are now using GLP-1 medications, almost three times as many as two years ago. About 6.3% of British households now include at least one user, underscoring how quickly the drugs have entered the mainstream.

The medications, originally developed to treat Type 2 diabetes, work by mimicking the GLP-1 hormone, helping people feel full longer and reducing appetite. They have become increasingly popular for weight management because many users experience significant weight loss while taking them.

Changes in what people buy

Worldpanel by Numerator found the medications are changing what consumers buy as well as how much they spend. More than three-quarters of users reported eating less chocolate and fewer potato chips, while over half said they experienced fewer food cravings overall. Many also said they were eating more mindfully and choosing healthier foods.

The shift is beginning to ripple through the grocery industry.

Manufacturers and retailers are seeing weaker demand for traditional snack foods and confectionery, while interest is growing in products that are higher in protein and fiber or specifically marketed to GLP-1 users. Some supermarket chains have already introduced meal plans and products designed for consumers taking the medications.

The study also found that cost remains a significant barrier. About 40% of people who stopped taking GLP-1 medications said expense was the primary reason they discontinued treatment.

The findings are consistent with other recent research showing that GLP-1 medications are changing consumer spending habits. A peer-reviewed study published in the Journal of Marketing Research found that grocery spending falls by about 5.3% within six months after a household member begins taking a GLP-1 drug, with restaurant spending also declining.

Realtor.com lowers its 2026 forecast for home price appreciation, citing slower growth

By Mark Huffman of ConsumerAffairs

• Realtor.com has lowered its 2026 home price growth forecast to 1.2%, down from 2.2%, saying prices are now expected to rise more slowly than inflation.

• Existing home sales are still projected to increase this year, but the forecast has been trimmed slightly to 4.10 million homes as elevated mortgage rates continue to restrain buyers.

• The housing market is expected to become more buyer-friendly in the second half of the year, with slower price growth, improving affordability and declining rents.

A major housing platform has issued its mid-year report on the housing market, and even though affordability remains a serious issue, the report is favorable for buyers.

Realtor.com expects the housing market to remain sluggish through much of 2026, and that may gradually favor of buyers as home price growth slows, affordability improves and sellers become more realistic about pricing.

The online real estate marketplace this week revised its forecast for existing-home price appreciation to 1.2% this year, nearly half the 2.2% increase it projected in December. Because inflation is expected to outpace home price growth, Realtor.com says home values are effectively declining in real terms, giving buyers some long-awaited relief.

Inching forward

"The housing market is inching forward as sellers reset expectations, price growth cools, and buyers gain more negotiating power," Danielle Hale, chief economist at Realtor.com, said in the report. She added that momentum should build during the second half of the year as more buyers and sellers find common ground.

Despite the softer pricing outlook, Realtor.com left its mortgage rate forecast unchanged. The company expects the average 30-year fixed mortgage rate to remain around 6.3% throughout 2026, saying a resilient economy and persistent inflation pressures have offset hopes for significantly lower borrowing costs.

The firm also modestly reduced its forecast for existing-home sales to 4.10 million, down from the 4.13 million projected at the end of 2025. Even so, that would represent a 1% increase over 2025, with sales activity expected to strengthen during the second half of the year after a slow start.

Encouraging sign

One encouraging sign for buyers is affordability. Realtor.com now expects the typical monthly mortgage payment to decline 1.9% from last year, reflecting slower home price growth and steady mortgage rates. Combined with rising household incomes, that should reduce the share of income needed for housing payments.

Inventory is also expected to continue growing, though at a slower pace than previously forecast. Realtor.com now projects the number of homes for sale will increase 3.6% this year, providing buyers with more choices while easing some of the intense competition that characterized the market in recent years.

The outlook also calls for rents to decline another 1.2% in 2026, continuing a trend that has made renting a more attractive option for many households, although the gap between renting and buying has narrowed as homeownership costs have eased somewhat.

While affordability remains a challenge, Realtor.com said first-time buyers are beginning to play a larger role in the market. They accounted for 35% of home purchases in May, up from 30% a year earlier, a sign that improving conditions are encouraging more households to make the leap into homeownership.