Stock: Home prices forecast to dip in 22 U.S. cities in 2026, mortgage rates to ease - 2026-02-03

[Para 1: The Lead] Home prices are projected to decline in 22 of the largest 100 U.S. cities in 2026, marking a shift toward a more balanced housing market, according to Realtor.com. Mortgage rates are forecast to ease slightly, reaching an average of 6.3% by the end of the year, down from 2025's 6.6% average. [Para 2-3: Supporting details & Context] The analysis predicts that lower mortgage rates and robust wage growth will encourage increased homebuyer activity. Existing-home sales are expected to rise 1.5% to 4.13 million properties in 2026, up slightly from 2025's 4.07 million. Prices are set to drop notably in Southeast and Western cities, including Cape Coral and Fort Lauderdale, Florida, where home values are forecast to decline by 10.2% and 8.9%, respectively. This trend is attributed to expanded inventory and a return to more normal demand levels post-pandemic. Meanwhile, prices in the remaining 78 largest U.S. cities are expected to increase by a median of 4%, reflecting a gradual recovery in the housing market.