What’s Trending in Today’s Housing Market?

The housing market is ever evolving-and so are the homes buyers are choosing. Whether you’re dreaming of a spacious Mediterranean villa or a cozy Colonial, knowing what’s trending can help you shop smarter and feel more confident in your decisions.

Colonial & Traditional American Styles  

Classics never go out of style. Colonial and traditional American-style homes remain the most common on the market, making up nearly half of all homes for sale. Their symmetrical design, timeless appeal, and family-friendly layouts continue to attract buyers across the country.

If you're looking for something familiar, functional, and full of charm, a Colonial-style home might be the perfect fit.

Mediterranean Homes

Mediterranean-style homes—known for their stucco walls, red tile roofs, and expansive layouts—are among the largest and priciest properties available today. That’s no surprise, considering they’re most common in high-cost markets like Los Angeles and Miami.

While these homes offer plenty of luxury and curb appeal, they tend to come with a higher price point, which may be a consideration for today’s more budget-conscious buyers.

Bigger Isn’t Always Better

Over the past six years, larger homes have seen slower price growth compared to their smaller counterparts. That’s largely due to a shift in buyer preferences: many house hunters are prioritizing affordability and value over square footage, especially in lower-cost neighborhoods.

Smaller homes in desirable communities are becoming more attractive, particularly for first-time buyers or those looking to downsize.

Why This Matters

Understanding housing trends isn’t just for real estate professionals—it’s essential knowledge for anyone navigating today’s competitive market. Whether you’re just starting to browse or ready to make an offer, having the right information can help you feel more confident and in control.

At Team Lasson - Flat Branch Home Loans, we keep a close eye on market trends so we can help guide you through the process, every step of the way. If you're ready to start your home search, we're ready to help.

Team Lasson is here to assist with all of your home buying needs!  If you’re considering taking the leap into home ownership in the near future, we’re here to help.  Contact us today to explore which loan program aligns best with your financial goals. 

The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks.  Visit www.yourlakeloan.com or call us at (573) 216-7258 to get started today!

Michael Lasson

Senior Mortgage Banker

NMLS #:  493712

Flat Branch Home Loans – Team Lasson

2882 Bagnell Dam Blvd

Lake Ozark, MO 65049

Cell:  (573) 216-7258

Email:  teamlasson@fbhl.com

Website:  www.yourlakeloan.com

 **The postings on this site are my own and do not necessarily represent Flat Branch Home Loans positions, strategies, or opinions.

Flat Branch Home Loans NMLS 224149. A Division of Flat Branch Mortgage Inc.

For more licensing information, visit NMLSConsumerAccess.org

Mortgage FAQ

Navigating the world of mortgages can feel like a daunting task, especially if you're a first-time homebuyer or considering refinancing your current home loan for the first time. From understanding different types of mortgages to deciphering complex terminology, we're here to provide clarity and guidance. Let’s address some of the most common questions about mortgages, which will empower you to make informed decisions about your home financing journey.

Q: What are the different types of mortgages available?

A: There are several types of mortgages available to homebuyers, each with its own unique features and requirements. Some common types include:

• Fixed-Rate Mortgages: These mortgages have a fixed interest rate for the entire term of the loan, providing stability and predictable monthly payments.
• Adjustable-Rate Mortgages (ARMs): ARMs have an initial fixed-rate period, after which the interest rate adjusts periodically based on market conditions.
• FHA Loans: Insured by the Federal Housing Administration, FHA loans are popular among first-time homebuyers and require a lower down payment.
• VA Loans: VA loans are available to eligible veterans, active-duty service members, and their spouses, offering competitive interest rates and flexible qualification criteria.
• USDA Loans: USDA loans are backed by the U.S. Department of Agriculture and are designed to help low- to moderate-income borrowers purchase homes in rural areas.

Q: How much do I need for a down payment?

A: The amount you need for a down payment depends on the type of mortgage you choose and your financial situation. While conventional mortgages typically require a down payment of at least 3% to 20% of the home's purchase price, government-backed loans like FHA, USDA and VA loans may require lower down payments, sometimes as little as 0% for USDA and VA loans. Flat Branch offers several down payment assistance programs, be sure to check out our offered programs to see if you may be eligible!

Q: What factors determine my mortgage interest rate?

A: Several factors influence your mortgage interest rate, including:  

• Credit Score: A higher credit score generally qualifies you for a lower interest rate.
• Loan Type: Different types of loans may have different interest rate structures.
• Down Payment: A larger down payment may result in a lower interest rate.
• Loan Term: Shorter loan terms typically have lower interest rates than longer terms.
• Market Conditions: Interest rates can fluctuate based on economic factors and market trends.

Q: How does the mortgage application process work?

A: The mortgage application process typically involves several steps, including:

• Prequalification: You provide basic financial information to determine how much you may be able to borrow.
• Preapproval: You submit documentation to verify your income, assets, and creditworthiness, allowing the lender to make a preliminary decision on your loan application.
• Loan Application: You complete a formal loan application, providing detailed information about yourself, the property, and your finances.
• Underwriting: The lender evaluates your application, including verifying the information provided and assessing the property's value.
• Closing: Once your loan is approved, you sign the necessary paperwork to finalize the transaction, and the funds are disbursed.  
  
  
  

Navigating the mortgage process doesn't have to be overwhelming. By understanding the basics of mortgages and familiarizing yourself with common questions and concerns, you can approach the mortgage process with confidence. Whether you're a first-time homebuyer or a seasoned homeowner, we're here to help you every step of the way.

Your dream home is within reach, and we're here to help you make it a reality.

Team Lasson is here to assist with all of your home buying needs!  If you’re considering taking the leap into home ownership in the near future, we’re here to help.  Contact us today to explore which loan program aligns best with your financial goals. 

The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks.  Visit www.yourlakeloan.com or call us at (573) 216-7258 to get started today!

Michael Lasson

Senior Mortgage Banker

NMLS #:  493712

Flat Branch Home Loans – Team Lasson

2882 Bagnell Dam Blvd

Lake Ozark, MO 65049

Cell:  (573) 216-7258

Email:  teamlasson@fbhl.com

Website:  www.yourlakeloan.com

 

**The postings on this site are my own and do not necessarily represent Flat Branch Home Loans positions, strategies, or opinions.

Flat Branch Home Loans NMLS 224149. A Division of Flat Branch Mortgage Inc.

For more licensing information, visit NMLSConsumerAccess.org

What to watch in 2026

With 2025 essentially in the rearview mirror, the housing sector had a decent year, but what lies ahead in 2026 will depend on mortgage rates, inventory levels, and consumer demand. Key things to watch in 2026 include whether mortgage rates stay low, how home prices change with affordability, and any shifts in lending rules. Seasonal trends, new home construction, and local market conditions will also affect buyers, sellers, and investors.

The Federal Reserve lowered the Fed Funds Rate at the December 10th Fed meeting and could be on course to possibly lower rates further in early 2026. Lower Fed Funds rates mainly affect short-term borrowing costs, which can lower rates on adjustable-rate mortgages, home equity lines of credit, and other variable-rate loans like credit cards and some personal or auto loans. Fixed-rate mortgages aren't directly tied to the Fed, but lower rates can still influence refinancing activity and overall borrowing costs. Watching these shifts can help buyers and homeowners plan for potential savings in 2026.

Forecasts for the 30-year fixed mortgage rate in 2026 suggest modest declines, though rates are likely to remain elevated by historical standards. Fannie Mae projects the average rate will fall to about 5.9% by the end of 2026, down from 6.4% in 2025. The Mortgage Bankers Association (MBA) anticipates a slightly higher rate of around 6.4% by year-end, while NerdWallet expects rates to remain at or above 6.5% throughout 2026. Overall, these projections point to only gradual relief for borrowers, indicating that mortgage costs will likely stay relatively high even as the housing market adjusts.

Consumer spending trends will also play a key role in the housing market in 2026. Real retail sales have shown steady growth over the past year, reflecting resilient consumer demand despite some month-to-month fluctuations. Continued strength in household spending can support home purchases and refinancings, while any slowdown could temper housing activity and buyer confidence. Real retail sales measure consumer spending on goods and services adjusted for inflation.

Bottom line: While 2025 is ending on a positive note for housing, 2026 could offer modest relief on mortgage rates, with borrowing costs remaining elevated but consumer demand staying steady. Buyers, sellers, and investors should keep an eye on rates, affordability, and lending trends to make the most of opportunities in the year ahead.

Source: Mortgage Market Guide

Team Lasson is here to assist with all of your home buying needs!  If you’re considering taking the leap into home ownership in the near future, we’re here to help.  Contact us today to explore which loan program aligns best with your financial goals. 

The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks.  Visit www.yourlakeloan.com or call us at (573) 216-7258 to get started today!

Michael Lasson

Senior Mortgage Banker

NMLS #:  493712

Flat Branch Home Loans – Team Lasson

2882 Bagnell Dam Blvd

Lake Ozark, MO 65049

Cell:  (573) 216-7258

Email:  teamlasson@fbhl.com

Website:  www.yourlakeloan.com

 

**The postings on this site are my own and do not necessarily represent Flat Branch Home Loans positions, strategies, or opinions.

Flat Branch Home Loans NMLS 224149. A Division of Flat Branch Mortgage Inc.

For more licensing information, visit NMLSConsumerAccess.org