What the latest mortgage data means for home sales forecasts in 2026

Neil Caron
13 minutes ago
3 min read

October 30, 2025 | Market Outlook | Presented by ReadySetLoan™️

2026 may finally mark a turning point for New England homebuyers and sellers — especially in Connecticut and Rhode Island. Mortgage rates are stabilizing, inventory is gradually expanding, and confidence is beginning to return to the housing market. For buyers in towns like Hartford, New Haven, Stamford, and Providence, the next year could bring a more balanced and accessible market. Let’s explore what the latest data suggests and how ReadySetLoan™️ sees opportunity emerging across both states.

Local Market Snapshot & Key Drivers

🔹 Connecticut Trends

Connecticut continues to show resilience. Home prices have climbed steadily, but at a more sustainable pace than recent years. The number of homes sold has increased, and inventory is slowly rebuilding after a long shortage. Although supply is still tight — hovering near two months — the gradual rise in new listings and building permits is encouraging.

The state remains undersupplied overall, but developers are stepping up. Housing permits and construction starts are trending higher, signaling confidence in the market’s long-term strength. With mortgage rates showing signs of moderation, buyers may soon see more listings and slightly less competition, while sellers benefit from strong equity positions.

🔹 Rhode Island & Providence Region

Rhode Island’s market remains one of the most competitive in New England, but some balance is returning. Home prices have appreciated sharply in recent years, and sales activity continues to rise. Inventory has begun to increase modestly, offering buyers a few more options — though supply remains tight across the state.

The Providence metro area is seeing particularly strong demand from both local and out-of-state buyers seeking relative affordability compared to Boston or New York suburbs. As rates ease and confidence returns, 2026 could be the year that brings more fluid movement across this coastal corridor.

What It Means for Buyers and Sellers in CT & RI

🏡 For Buyers

Expect more inventory entering the market as homeowners with equity decide to move and builders add new supply.
Mortgage rates have steadied and could trend slightly lower, creating better borrowing conditions.
A gradual increase in listings will improve choice and could temper bidding wars, especially for those ready to act early in 2026.

📈 For Sellers

Sellers remain in an excellent equity position after several years of appreciation.
The lock-in effect is easing as the gap between current and existing mortgage rates narrows.
Acting before inventory builds further may allow sellers to capture top-of-market pricing before conditions normalize.

🐷 RSL Piggy Points

Connecticut and Rhode Island markets are shifting toward a more balanced environment for 2026.
Homeowners are sitting on record equity, which is unlocking more listings and mobility.
New construction and permit growth signal confidence from builders statewide.
Mortgage rates are stable and could improve, supporting both buyer demand and refinance opportunities.
Early 2026 could favor motivated buyers — and sellers who act before supply grows further.

Neil’s Take 🎤

“For my clients across Connecticut and Rhode Island, 2026 could be a realignment year. The frenzy is cooling, but not collapsing — and that’s a good thing. Buyers will see more opportunities without the chaos of 2021 or 2022, and sellers can still capture strong values backed by real equity. The key now is preparation — know your numbers, understand your financing, and be ready to move when the right property hits the market.”

(Neil Caron – Area Sales Manager at CMG Mortgage)

🐽 Snout-Out: The RSL Perspective

The ReadySetLoan™️ team believes the 2026 market will bring the kind of equilibrium New England has needed for years. Connecticut and Rhode Island are both showing positive signs of growth, expanding inventory, and sustained buyer confidence. For anyone who’s been waiting to buy or sell, the coming year represents an opportunity to make informed, strategic moves with guidance from trusted local experts.

At ReadySetLoan™️, we help clients understand the full landscape — from rates to renovation programs — so every decision feels clear and confident. Let’s get you across the finish line. Ready, set, home!