The Federal Reserve has now delivered its third consecutive interest-rate cut, lowering the target range to 3.50%–3.75%.
For buyers and sellers across Greater Boston, the South Shore, and coastal Massachusetts, this shift is already beginning to reshape affordability, demand, and market timing.

Here’s what The Charles King Group is seeing—and what you should be preparing for as we head into 2026.

Mortgage Rates Are Trending Down—and Buyer Activity Is Picking Up

Today’s 30-year fixed mortgage rate sits around 6.36%, compared to 6.78% this time last year.

Lower borrowing costs are:

• Bringing more buyers back into the search pool

• Helping pre-approved buyers increase their purchasing power

• Incentivizing renters to consider buying sooner

• Improving affordability in previously stretched markets like Newton, Hingham, and South Boston

For Massachusetts homeowners who were waiting for rates to fall below 6.5%, this is the first real window of opportunity.

Why the 10-Year Treasury Matters for Where Rates Go Next

Mortgage rates are closely tied to the 10-year Treasury yield, which has also been sliding since the Fed’s announcement.

If the historically wide mortgage–Treasury spread returns to normal levels, rates could fall an additional:

➡️ 0.50%–0.75% — even without more Fed cuts.

This is one of the biggest reasons economists expect early 2026 to be far more active than 2024 and 2025.

Expect Early 2026 Buyer Demand to Surge Ahead of Spring

Our team anticipates a pre-spring rush as interest rates continue easing.

Based on current demand indicators, we expect:

• More first-time buyers re-entering the market

• A rise in move-up buyers who delayed selling in 2024–2025

• Faster absorption in competitive markets like the South Shore, Cambridge, and MetroWest

• Multiple-offer situations returning in key neighborhoods

If you're planning to buy in 2026, getting pre-approved earlier—and locking a rate if possible—will be an advantage.

It’s Not Just a Win for Buyers—Sellers Stand to Benefit Too

Rate cuts typically accelerate demand, but this round is uniquely favorable for sellers.

Expect:

• Shorter days on market

• More showing traffic

• Stronger pricing power, especially for homes priced $1.2M+

• A rebound in luxury and near-luxury markets

• More move-up sellers who finally feel comfortable listing

Sellers who list in Q1–Q2 2026 may capture peak momentum.

The Bottom Line for MA Real Estate in 2026

Affordability is improving, buyers are returning, and market energy is building fast.
With three straight rate cuts now behind us, the 2026 Massachusetts real estate market is shaping up to be busy, competitive, and much more favorable than the past two years.

For personalized advice on buying, selling, or preparing for market shifts, The Charles King Group is here to guide you.

Work With The Charles King Group

Thinking about buying or selling in 2026?
Our team provides:

• Strategic pricing & market-positioning plans

• Data-driven buyer strategies

• Expert negotiation

• 1031 exchange guidance

• Long-term investment planning

Reach out for a confidential consultation.