Key facts
- Existing home sales are positive year-over-year in 2026.
- Improved mortgage spreads are supporting home sales.
- Mortgage rates have remained below 6.75% in 2026.
- Elevated mortgage rates and a hawkish Federal Reserve are present.
- Rates above 7% previously softened housing demand.
- Housing growth has been sustained in 2026.
Existing home sales are experiencing positive year-over-year growth in 2026, a trend that persists despite the presence of elevated mortgage rates and a hawkish Federal Reserve. The sustained housing growth is primarily supported by improved mortgage spreads. These spreads have effectively kept mortgage rates below the 6.75% threshold throughout 2026. This situation marks a notable contrast to previous years, during which mortgage rates surpassing 7% led to a significant softening of demand in the housing market. The current market dynamics suggest a greater tolerance for higher rates when spreads are favorable, allowing sales to continue their upward trajectory.