United States residential real estate market report for October 2026. National house prices were edging up, up 1.2% from a year earlier in Q2 2026 (+0.5% quarter on quarter). Annual growth is steady compared with the previous quarter. The Federal Reserve’s policy rate stood at 3.88% in September 2026, down from 4.13% a year earlier.
October 2026 at a Glance
House Prices and Trends
The national house price index for the United States rose 1.2% year on year in Q2 2026 and was +0.5% against the previous quarter, according to BIS, Residential property prices (nominal). A year earlier the annual rate was +2.0%, so growth has cooled over twelve months.
| Quarter | Prices YoY | Prices QoQ |
|---|---|---|
| Q1 2025 | +2.8% | +0.3% |
| Q2 2025 | +2.0% | +0.0% |
| Q3 2025 | +1.4% | +0.3% |
| Q4 2025 | +1.0% | +0.4% |
| Q1 2026 | +0.7% | 0.0% |
| Q2 2026 | +1.2% | +0.5% |
House price index, % change year on yearQ3 2024+3.7%Q4 2024+3.5%Q1 2025+2.8%Q2 2025+2.0%Q3 2025+1.4%Q4 2025+1.0%Q1 2026+0.7%Q2 2026+1.2%
Financing and Interest Rates
The Federal Reserve’s policy rate was 3.88% in September 2026 (BIS, Central bank policy rates). That is a rise of 0.25 points from 3.63% the month before. Rates have come down 0.25 points over the past year, easing mortgage costs and widening the pool of buyers who qualify for financing.
United States in the News
- Mexicans Have Become the Second Largest Foreign Buyer of Residential Real Estate in the United States – Funds Society (Funds Society, 6 Oct 2026)
- The Mormon church is expanding its real-estate empire across the United States: ‘They’re opportunists in a very calculated way’ – EL PAÍS English (EL PAÍS English, 20 Sep 2026)
Reading the Trend
Prices in United States are essentially flat in nominal terms — which, after inflation, means slightly falling in real terms. Buyers have more time and more leverage than a year ago.
What to watch next month
- The next quarterly release of the house price index for the United States (Q2 2026 is the latest) — whether annual growth holds near +1.2%.
- Upcoming decisions by the Federal Reserve — any move from 3.88% feeds through to mortgage pricing within weeks.
What This Means for Buyers, Sellers and Investors
Time is on your side — offers below asking are normal in a flat market, especially on stock listed for more than 90 days.
The first two weeks on the market matter most — price to the last comparable sale, not the highest asking price in the street.
Falling financing costs improve leveraged returns and widen the gap between yield and mortgage rate.
Sources
- BIS, Residential property prices (nominal)
- BIS, Central bank policy rates
- Headlines via Google News RSS; content belongs to the linked publishers.
Previous edition: United States Real Estate Market Report — September 2026
Cover photo: Male Red-winged blackbird (Agelaius phoeniceus) John Heinz National Wildlife Refuge, Philadelphia, Pennsylvania, United States by Chuck Homler, Focus On Wildlife via Wikimedia Commons, CC BY-SA 4.0.
Methodology: all figures are taken directly from the free public statistical sources linked above, for the periods stated; official statistics are published with a lag, so the latest available release is used. Commentary is generated from those figures by rule and reviewed before publication. Nothing here is financial advice.
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