Buying a house remains a challenge as America’s affordable housing crisis shows no signs of easing. Experts say buying will remain difficult due to high home prices and rising mortgage rates. These two factors are expected to challenge potential homeowners for years to come.

Thomas Ryan, an economist at Capital Economics, predicts that affordability will remain strained. He forecasts that the average 30-year fixed mortgage rate will stay near 7% through most of 2025. Rates might drop to 6% by late 2026. Ryan recently told Business Insider, this is due to President-elect Donald Trump’s inflationary policy agenda. These policies have dampened expectations for Federal Reserve interest rate cuts.

Mortgage rates have already increased. Freddie Mac reported that the average 30-year fixed rate climbed to 6.81% after Thanksgiving. This is a significant rise from 6.08% before the 2024 Presidential Election. The higher rates have slowed refinancing and reversed earlier increases in home purchase applications.

Home prices are also expected to rise further. Ryan predicts a 4% increase annually in both 2025 and 2026. If these projections are correct, the median-priced home in the U.S. could reach $455,000 by 2026. This would create additional hurdles for people considering buying a house.

Ryan describes the situation as one of “strained affordability.” Many households are finding it harder to enter the housing market. Consumer sentiment reflects this reality. A recent University of Michigan survey showed fewer than 20% of respondents believe now is a good time to buy. This is a sharp drop from about 70% before the COVID-19 pandemic.

Soaring home prices, limited inventory, and high borrowing costs are driving this pessimism. Together, these challenges have created a difficult environment for homebuyers.

Renters aren’t faring much better. An American Community Survey recently revealed that most renters in 21 states spent over 30% of their income on rent and utilities last year. This highlights the broader issue of housing affordability in the U.S.

For those thinking about buying a house, careful planning is essential. Patience and strategic financial preparation will be key to navigating these challenging conditions. While affordability may not improve soon, these steps can help make homeownership more achievable.