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Every housing market rewards different behaviors. Some years favor speed, while others favor patience. In Windsor, 2026 will reward preparation.

As we approach the new year, many buyers are grappling with a common question: “Should I wait for rates to drop?” However, a more strategic question might be: “How can I create leverage if rates do not decline?”

In 2026, leverage will not stem from timing the market. Instead, it will come from being ready before opportunities present themselves.

Mortgage rates reached a 23-year high in 2023, saw a modest cooling in 2024 and 2025, and are expected to stabilize throughout 2026.

By late 2025, the national average for a 30-year fixed mortgage hovered around 6.18%. Forecasts from key housing authorities indicate a consistent outlook as we move into the new year.

Most projections suggest rates will settle in the low-to-mid 6% range by the end of 2026. This shift is significant as it alters the strategy needed for success in the market.

This is not a market for waiting. It is a market for those who win with a well-thought-out plan.

When mortgage rates stabilize, housing markets begin to normalize. Forecasts for 2026 suggest the following trends:

Inventory is expected to increase by nearly 9% year over year. Home price growth is anticipated to slow to approximately 2% to 3.5%. Existing home sales are projected to rise from long-term lows, and monthly payments may decline slightly for the first time since 2020. As competition eases, buyer negotiating power improves.

This is what a balanced market looks like in Windsor. Homes will still sell, and desirable properties will move quickly. However, sellers will be more responsive to certainty, clean offers, and qualified buyers.

In this environment, preparation becomes a valuable asset.

Nearly 80% of homeowners with a mortgage have a rate below 6%. This reality keeps many potential sellers on the sidelines.

Consequently, inventory will recover slowly rather than suddenly. Well-priced homes will still draw interest, and the best opportunities will go to buyers who can act decisively. Waiting for an influx of listings or a dramatic rate drop could leave buyers in Windsor stuck longer than anticipated.

At NEO Home Loans, we observe this pattern every year. The buyers who succeed in February, March, and April are rarely those who begin preparing during that time. Instead, they are the ones who clarify their financial situation early, strengthen their buying position before they start shopping, understand how to structure an offer strategically, and are ready when the right home appears. Leverage is established before a listing hits the market.

Preparation goes beyond just obtaining a pre-approval letter. NEO assists buyers in three key areas:

First, financial clarity is essential. We help buyers understand their true buying power rather than just providing a payment estimate. We also demonstrate how down payment choices impact both rates and affordability, allowing buyers to model various scenarios so their decisions are proactive.

Second, offer strength is vital in a balanced market. Sellers tend to prefer certainty, and NEO helps buyers by facilitating earlier full underwriting in the process, reducing friction and surprises during escrow, and presenting offers that stand out without overpaying.

Lastly, we emphasize strategy over guesswork. Markets do not reward hope; they reward thorough planning. We guide buyers through builder incentives, rate buydowns, new construction opportunities where pricing and concessions are most favorable, and negotiation strategies that align with current inventory and demand. This is how preparation transforms into leverage.

One of the most significant advantages in the current market is new construction. Builders are motivated sellers in 2026, often offering mortgage rate buydowns, closing cost credits, and below-market financing options. In many cases, new homes are now priced more affordably per square foot than existing homes, and builders are stepping in to fill the gap left by limited entry-level resale inventory. Prepared buyers are well-positioned to take advantage of these opportunities.

Even with modest home price growth, affordability is gradually improving. This improvement can be attributed to the stabilization of mortgage rates, expected income growth outpacing inflation, and a slight softening of real, inflation-adjusted home prices. For the first time since 2022, the typical mortgage payment is projected to fall below 30% of median income, representing a significant psychological and financial threshold for buyers.

While the changes may not seem dramatic on a day-to-day basis, they alter what is feasible for prepared buyers.

2026 will not be without its challenges for buyers. Affordability remains a concern, inventory is still below pre-pandemic levels, and rates are not expected to return to 3%. However, this is no longer a market where buyers feel powerless. Negotiating power is improving, inventory is increasing, and sellers are adjusting their expectations.

The buyers who will succeed are not those waiting for perfect conditions. They are the ones who prepare for the real conditions.

If buying a home is part of your plan for 2026, January is not too early. It is precisely the right time to start preparing. By doing so, you can unlock more inventory, better affordability, and stronger negotiating power when it matters most.

At NEO Home Loans, we focus on helping you prepare for the market rather than chasing it. When opportunities arise, you will be ready.