Mortgage rates, inventory, and inflation: The market shifts to watch before 2026After nearly two years of uncertainty, three forces are converging to reshape the landscape for homebuyers heading into 2026. Mortgage rates show signs of leveling off after months of volatility, builder sentiment has improved from cycle lows, and inflation data continues influencing Federal Reserve policy that ripples through housing finance, NewHomeSource reports.The challenge is knowing which signals matter most.Mortgage Rate StabilityOne of the most significant factors in the housing market has been the unpredictability of mortgage rates, which has affected buyers more than the actual rate levels. "Unstable mortgage rates produce significant levels of uncertainty in the market," said Ken Johnson, Christie Kirkland Walker Chair of Real Estate and professor of finance at the University of Mississippi.