What the Second Half of 2026 Could Mean for Colorado Springs Home Buyers and Sellers

Mortgage Rates Could Be Nearing a Turning Point

One of the biggest reasons mortgage rates haven't dropped yet is inflation. Higher energy prices and ongoing global tensions have kept inflation elevated longer than expected. But here's the encouraging part: oil prices have already started coming down.

That might not sound like it connects to your mortgage, but historically, oil prices and mortgage rates tend to move in the same direction. When energy costs rise, inflation ticks up, and rates follow. When energy costs fall, the opposite tends to happen.

Falling oil prices could be an early signal that mortgage rates are headed lower.

It's too soon to say exactly when rates will drop or by how much. But if energy prices continue to ease, inflation cools off, and global tensions settle down, mortgage rates could improve in the months ahead. For anyone thinking about buying or selling in Colorado Springs, that's a shift worth watching.

Home Prices Are Still Projected to Rise

A lot of buyers are hoping prices will drop. But that's not what the national forecasts are showing.

Prices will always vary by market and by neighborhood — we've seen some areas here in El Paso County level off a bit. But nationally, experts are projecting home prices will rise about 2.3% by the end of 2026.

National home price forecasts project steady, moderate growth through year-end 2026.

Right now, Federal Housing Finance Agency data shows prices are up roughly 1.7% year-over-year nationally. For the full year to land around that 2.3% projection, price growth would need to pick up slightly in the second half. Nothing dramatic — just enough to finish the year on solid ground.

Here's why that matters locally: the number of homes for sale has grown, but that growth may be slowing. If mortgage rates improve and more buyers jump back in, we could see renewed competition — especially in desirable neighborhoods like Briargate, Briarwood, and the Monument area. For sellers, that's reassuring. For buyers, it means waiting may not guarantee a lower price.

More Homes Expected to Sell

If the market has felt quiet to you, you're not imagining it. Home sales have been slower than many experts predicted. But that doesn't mean people have stopped wanting to move — far from it. There's real pent-up demand out there. People have just been waiting for a clearer signal.

That signal may be coming. As Odeta Kushi, Deputy Chief Economist at First American, put it: "We expect pent-up demand to continue emerging gradually. But the pace of recovery will vary significantly across markets and will depend on the path of rates, labor market conditions and inventory growth."

To hit this year's sales projections, the second half needs to show meaningful momentum.

To hit this year's sales projections, the second half of 2026 would need to outperform the first half. Each month would need to approach the best month we've had so far (May). That's a real signal the experts expect momentum to build.

Here in Colorado Springs, we're already seeing that demand — especially for move-up buyers, military relocations, and new construction. People who've been sitting on the sidelines are starting to make moves.

The Bottom Line

The second half of 2026 probably won't be perfect. But it could be noticeably better.

Mortgage rates may ease. Home sales could pick up. And prices are expected to keep rising at a healthy, sustainable pace. If you've been waiting for signs that the market is shifting, this is it.

The best thing you can do is understand what these national trends mean for your specific situation — your neighborhood, your price range, your timeline. That's where we come in. Whether you're buying your first home in Colorado Springs, selling a property in Monument, or relocating from out of state, we'd love to help you make sense of it all.

Reach out anytime. We're here to help you make the right move at the right time.