Consumer

After three rate cuts in 2025, the Fed seemed ready to take a wait-and-see approach in 2026 — a strategy expected to hold amid a low-hire, low-fire job market.

The year is off to a good start with steady mortgage rates, more inventory and flat price growth. What remains to be seen is whether buyer demand will return.

Some real estate economists say the plan announced by the president on Jan. 7 won’t address the key issues at the heart of the housing affordability crisis.

The president announced a plan to prohibit “large institutional investors” from buying single-family homes, saying more housing proposals would be coming soon.

The share of home sales in Pacific Palisades and Altadena have jumped 50% or more, according to Realtor.com data — but prices have fallen sharply.

Last year, our readers focused their attention on the Federal Reserve, Zillow’s listing changes (and legal woes), and the direction of the housing market.

Though lower mortgage rates are improving affordability, economists warn that many potential homebuyers will still be “priced out” in the new year.

Nearly 20K homes worth about $46B were threatened in the Palisades and Eaton fires. As the number of vacant lots climbs, investors are starting to snap them up.

Plus, the president plans to announce his Fed chair nominee in January; HUD Secretary Scott Turner said “more research” on 50-year mortgages is needed.

That’s an improvement from 2022, when the timeline was twice as long, but it still puts homeownership out of reach for many consumers as savings rates decline.

Mortgage rates fell again this week, making a 2026 home purchase slightly more affordable for buyers who already have an advantage over sellers.

Home shopper keyword searches on Zillow revealed a preference for adaptable homes with regional characteristics over square footage and luxury.

A disputed report, which received funding from Zillow competitor CoStar, found that ZHL borrowers paid more than those who used other lenders between 2022-2024.

The November CPI report was based on incomplete data, “complicating interpretation.” Plus, mortgage applications, pending sales fall as buyers remain hesitant.

Destructive flooding in Washington state led many to discover that standard insurance policies don’t cover flood damage — an issue homeowners face nationwide.

The U.S. lost 105,000 jobs in October but added 64,000 in November as unemployment hit the highest mark in over four years, according to the BLS.

Optimism runs high — even as consumers and agents foresee more economic uncertainty ahead, a new survey found. And nearly everyone is worried about money.

High home prices and elevated mortgage rates are keeping first-time buyers locked out even amidst a rise in new home inventory, according to analyst John Burns.

Concerns about inflation, the labor market and the health of the U.S. economy at large could push rates higher in the coming weeks and months, economists warn.

A divided Fed worried about inflation and the softening jobs market cut short-term interest rates by 25 basis points on Dec. 10 — the third such cut this year.