If the first half of 2026 has left you feeling stuck, you're definitely not alone. Across Denver and the Front Range, many buyers and sellers pressed pause while waiting for mortgage rates to improve and affordability challenges to ease. Add in global uncertainty and it created an environment where many people simply chose to wait and see what happens next.

The question I'm hearing most often right now is simple: will the second half of the year be any better for the housing market?

While nobody has a crystal ball, there are several encouraging signs that conditions could begin improving over the months ahead. Here's what experts are watching as we move into the second half of 2026.

Mortgage Rates Could Be Near a Turning Point

One of the biggest reasons mortgage rates haven't come down yet is inflation. Higher energy prices and uncertainty overseas have contributed to keeping inflation elevated longer than many economists expected.

The encouraging news is that oil prices have already started coming back down.

That may not sound like it has much to do with buying a home, but historically mortgage rates and oil prices tend to move in the same direction.

As the chart below illustrates, both oil prices and mortgage rates moved higher earlier this year when overseas conflict intensified. While there has been some recent volatility, experts at the U.S. Energy Information Administration expect oil prices are forecast to come down, which could help create downward pressure on mortgage rates as well.

It's still too early to predict exactly when rates may move lower or by how much. But if energy prices continue to decline, inflation cools, and geopolitical tensions ease, mortgage rates could improve during the second half of the year.

For buyers who have been sitting on the sidelines, even a modest drop in rates could improve affordability and monthly payments. If you're planning to buy in the next 6 to 12 months, now may be a good time to get pre-approved so you're prepared if financing conditions improve.

The first half of the year tested everyone's patience. The second half may finally reward it.

Home Prices Could Pick Back Up

Many buyers are also hoping home prices will fall significantly. However, that's not what most national forecasts are showing.

While real estate remains highly local and some markets are experiencing modest price declines, experts still expect home prices nationally to finish the year higher than where they started.

Current forecasts project home prices will rise an average of 2.3% during 2026.

According to Federal Housing Finance Agency data, home prices are already up approximately 1.7% nationally year-over-year. Reaching the projected 2.3% annual increase would simply require a modest acceleration during the second half of the year.

Several factors could support that outcome. Inventory levels have improved considerably compared to recent years, but the pace of new inventory growth appears to be slowing. At the same time, if mortgage rates improve, more buyers could re-enter the market and increase competition for available homes.

Here in metro Denver, we're already seeing some neighborhoods attract multiple offers again when homes are priced correctly and presented well, even while the broader market remains more balanced than it was during the pandemic years.

For buyers, that means waiting may not necessarily lead to lower prices later. For sellers, it offers reassurance that home values continue to show resilience.

If you're considering a move, it may be worth taking some time now to start your home search and become familiar with current inventory and pricing trends.

More Homes Are Expected to Sell

If you've felt like the housing market has been quieter this year, you're not imagining it. Home sales have been slower than many economists originally projected.

That doesn't mean people have stopped wanting to move. Many buyers and sellers simply decided to wait for greater certainty, improved affordability, or a clearer direction for the economy and housing market.

Early indicators suggest that change may finally be approaching.

If rates improve and consumer confidence strengthens, many of those delayed moves could finally happen.

"Overall, we expect pent-up demand to continue emerging gradually. But the pace of recovery will vary significantly across markets and will depend on the path of rates, labor market conditions and inventory growth."

— Odeta Kushi, Deputy Chief Economist at First American

Forecasts suggest that in order to reach expected annual sales totals, the second half of 2026 will need to outperform the first half of the year.

In fact, many projections call for the remaining months of the year to perform similarly to the strongest month we've seen so far in 2026.

That points toward increased momentum as we move into fall and winter, potentially creating more opportunities for both buyers and sellers who have been waiting for conditions to improve.

Bottom Line

The second half of 2026 probably won't be perfect, but it could be noticeably better than the first half.

Mortgage rates may ease. Home sales could pick up. And prices are expected to continue rising at a healthier and more sustainable pace.

If you've been waiting for signs that the market may be turning a corner, these could be the signals you've been looking for.

Every move is personal, and national headlines don't always reflect what's happening here in Denver. If you'd like to talk through what these forecasts could mean for your plans or get a clearer picture of what's happening in your neighborhood, feel free to reach out to me. I'm always happy to be a resource and help you make sense of the market.