“We
are
heading
into
a
shift,”
said
Shannon
Herrmann,
a
Montana-based
LO.
“We’ve
hit
our
bottom
for
housing
stagnation
and
will
see
a
steady
increase
in

home
sales
and
a
decrease
in
mortgage
rates
by
the
third
quarter
of
2026.”

Move-up
buyers
are
expected
to
benefit
most,
with
39%
of
lenders
surveyed
predicting
that
this
group
will
have
the
strongest
outcomes
in
the
coming
year.

First-time
buyers
are
expected
to
continue
sitting
on
the
sidelines,
especially
as
high
prices
and
difficulty
saving
for
down
payments
continue
to
be
hurdles.

Rising
personal
debt
is
prompting
some
prospective
buyers
to
test
out
co-buying
or
nontraditional
arrangements.
“Friends,
family
members,
or
investors
are
teaming
up
to
purchase
a
home
together,”
Herrmann
said.

Non-occupying
co-borrowers
and
gifts
from
relatives
are
also
becoming
more
common.
But
as
homeownership
becomes
increasingly
out
of
reach,
HomeLight’s
survey
found
that
some
buyers
are
turning
to
online
lenders
or
unlicensed
sales
agents,
often
resulting
in
poor
financial
decisions.

Despite
these
challenges,
reduced
rates
may
entice
hesitant
buyers.
“Lower
rates
[will]
motivate
buyers
who
were
on
the
fence
to
purchase
their
first
home,”
said
Dennis
Bergstrom,
a
loan
officer
with
more
than
20
years
of
experience.

Home
equity
will
continue
to
be
used
for
debt
consolidation,
while
AI
tools
are
expected
to
streamline
the

mortgage
application
process.
Half
of
lenders
surveyed
believe
AI
will
improve
efficiency
for
borrowers
and
loan
officers
alike.

Buy-before-you-sell
programs
are
also
expected
to
rise
in
popularity
as
41%
of
LOs
predict
that
this
will
be
the
most
popular
form
of
alternative
financing
next
year.

“At
the
end
of
the
day,
it’s
all
about
timing,”
said
Richie
Helali,
HomeLight’s
enterprise
sales
manager.
“If
the
average
homeowner
is
looking
to
buy
another
property
today,
using
a
buy-before-you-sell
program
gives
them
the
ability
to
generate
a
stronger
offer
on
their
current
home,
without
the
stress
of
wondering
when
they’ll
make
it
into
their
next
home.”

Industry
experts
urge
prospective
buyers
to
act
sooner
rather
than
later.

“Homebuyers
who
could
have
purchased
a
home
in
2025
and
are
waiting
will
regret
not
doing
so
before
mid-2026,”
said
Arizona-based
loan
officer
Steve
Farrington.
For
younger
buyers,
lenders
recommend
flexibility,
starting
small
and
consulting
professionals
to
create
long-term
plans.