Today’s mortgage rates remain stable, but Zillow’s latest housing market outlook signals a shift: U.S. home prices may rise slightly over the next year — after months of decline. But the typical payment still costs nearly $1,000 more per month than it did before the pandemic. Zillow’s new forecast: Home prices to rise 0.4%Zillow economists now predict home prices will increase 0.4% from July 2025 to July 2026, as measured by the Zillow Home Value Index. “Affordability and access is gradually improving where builders have been able to keep up with demand,” Zillow said. While rates remain above 6%, inflation and Fed policy could still influence late-2025 mortgage trends.