The Homeowners Who Have Been Stuck for Years

There is a group of homeowners who have felt stuck for years.

And in 2026, many of them are finally going to move.

To understand why, we have to go back to what happened during the pandemic housing boom.

In 2020 and 2021, millions of homeowners across the country refinanced their mortgages into historically low interest rates around 3 percent. For many people, it was a once in a lifetime opportunity to lock in an extremely low monthly mortgage payment.

And they took it.

At the time, it felt like a financial win. But over the past few years, it has created a new challenge in the housing market.

The “Locked In” Mortgage Effect

Many homeowners who refinanced into a 3 percent mortgage rate now feel stuck in their current home.

Their needs have changed. Their family has grown. They may have started working from home and need a dedicated office. Some want a bigger yard or access to a better school district. Others may have changed jobs and would prefer to live closer to work.

But making a move means giving up that incredibly low mortgage rate.

For many homeowners, the idea of trading a 3 percent mortgage for a 7 percent mortgage simply did not make financial sense. So instead of selling their home and moving, they stayed put.

This situation is commonly referred to by economists as the “locked in effect” in the housing market.

And it has had a huge impact on housing inventory across the country, including the Dallas Fort Worth real estate market.

The Rise of Pent Up Housing Demand

Because so many homeowners decided to stay in place, the housing market has been dealing with what economists call pent up demand.

Pent up demand happens when a large group of people want to make a move but have been holding off because market conditions were not favorable.

For the past few years, those homeowners have been waiting.

Waiting for mortgage rates to ease.
Waiting for more homes to hit the market.
Waiting for home prices to stabilize.

And now in 2026, some of those conditions are starting to change.

Why 2026 Could Be a Turning Point for the DFW Real Estate Market

Several important shifts are happening in the housing market right now.

Mortgage rates are easing compared to last year. Instead of hovering around 7 to 8 percent, many buyers are now seeing rates closer to 6 percent.

Housing inventory is also increasing. The Dallas Fort Worth housing market has seen one of the largest increases in available homes in the country, ranking among the top markets for inventory growth.

At the same time, home prices are beginning to adjust. Over the past year, prices in many areas have softened slightly, with some data showing an average decrease of around 3.4 percent.

These changes may not sound dramatic on their own, but together they are starting to loosen the conditions that kept so many homeowners stuck.

What This Means for Buyers in the DFW Housing Market

If you are planning to buy a home in the next 12 months, these shifts could create new opportunities.

More homeowners entering the market means more homes for sale. That increase in housing inventory can give buyers more options and slightly more negotiating power compared to the ultra competitive markets we saw in 2021 and early 2022.

However, there is another side to this.

As those pent up sellers enter the market, many of them will also become buyers. Someone selling a home often needs to purchase another one, which means more competition for available properties.

In other words, inventory may increase, but so will the number of active buyers.

If buying a home in DFW is part of your plan this year, now is a good time to start preparing. Getting pre approved for a mortgage, understanding your budget, and watching the local housing market can help you stay ahead of the next wave of competition.

What This Means for Sellers

For homeowners who have been waiting for the right time to sell, 2026 could finally offer that opportunity.

But the strategy is different from what worked during the peak of the housing boom.

In 2021, many homes practically sold themselves. Inventory was extremely low, buyers were competing aggressively, and sellers often received multiple offers within days.

Today’s market requires a more strategic approach.

Sellers need to focus on accurate pricing, strong marketing, and making their home stand out among the growing number of listings. Buyers have more choices now, which means presentation and pricing matter more than ever.

The DFW Housing Market Is Starting to Thaw

For the past few years, the housing market has been partially frozen by the inventory shortage created by ultra low mortgage rates.

Homeowners did not want to give up their 3 percent loans, so they stayed where they were.

That inventory squeeze kept many potential moves from happening.

But in 2026, the market is starting to thaw.

As mortgage rates ease, housing inventory increases, and home prices adjust, more homeowners may finally feel comfortable making the move they have been putting off for years.

And when that happens, the Dallas Fort Worth real estate market could see a significant shift in both supply and demand.

Thinking About Buying or Selling in DFW?

If you are planning to buy a home in the Dallas Fort Worth area or are considering selling your current home, now is the time to start planning your strategy. Contact me!