Home Prices Are FALLING, Mortgage Rates Are RISING (Here’s What to Know)

Home prices are falling in parts of the U.S. housing market, but does that mean 2026 is finally a good time to buy a house? We break down falling home prices, mortgage rates, housing inventory, first-time homebuyer affordability, and why new construction can now cost less than existing homes. You’ll also learn what today’s changing real estate market means for buyers and sellers, how to know how much house you can afford, and why our 3/5/25 home-buying rule can help keep housing from squeezing the rest of your financial life. Timestamps 00:00:00 Home Prices Are Falling—What’s Going On? 00:03:39 What’s Driving Home Prices Right Now? 00:12:04 What Should Home Buyers and Sellers Do? 00:19:52 Should You Buy a “Good Enough” House or a Nicer Home? 00:26:39 How Should You Value Your Home on Your Net Worth? 00:30:18 Should You Invest in a Brokerage Account at 26? 00:35:06 Does Your Deductible Count Toward Your Emergency Fund? 00:40:44 Moneyverse Milestones 00:49:20 Should You Pay Off Low-Interest Debt Before Starting a Family? 00:53:28 Should Your Down Payment Be Invested? 00:57:36 When Can You Finally Loosen Up and Spend More? 🔗 How Much House Can You Afford? → https://moneyguy.com/tool/how-much-house-can-you-afford/ 🔗 Home Buying Checklist → https://moneyguy.com/resource/home-buying-checklist/ 🔗 The Ultimate Guide to Buying a House → https://moneyguy.com/guide/home-buying/ 🔗 Financial Order of Operations → https://moneyguy.com/guide/foo/ 🎓 Brian Preston (CFP®, CPA) and Bo Hanson (CFA®, CFP®) share professional insights to help you own your financial future. Jump start your journey with our FREE financial resources: https://moneyguy.com/resources/ Subscribe on YouTube for early access and go beyond the podcast: https://www.youtube.com/c/MoneyGuyShow?sub_confirmation=1 Connect with us on social media for more content: https://moneyguy.com/link-in-bio/ Take the relationship to the next level and become a client: https://moneyguy.com/become-a-client/ #WealthBuilding #PersonalFinance2026 #RetirementPlanning #FinancialFreedom