The past few years have been anything but kind to those in real estate. But as 2026 unfolds, many of us are starting to feel something we haven’t felt in a while… cautious optimism.

And no, that positivity isn’t just fueled by excitement over the Winter Olympics, America’s 250th birthday, or even the upcoming wedding of the century. The real estate world has its own reasons to be optimistic about the year ahead—namely, a welcome return to stability.

So, SoftPro is once again pulling out our crystal ball to make six predictions that title professionals can likely expect this year.

Use the links below to jump to a specific section of this blog:

• • 1. Mortgage Rates Will Gradually Decline 
  • 2. Inventory Will Grow as the “Lock-In Effect” Fades 
  • 3. Affordability Will Remain a Challenge for First-Time Buyers
  • 4. AI Will Become Even More Integral to Operations (and Everyday Life) 
  • 5. Fraud Will Continue to Escalate, and Demand Earlier Stage Detection
  • 6. FinCEN’s Anti-Money Laundering (AML) Rule Will Reshape Title Operations
  • Policy Changes Could Add New Layers of Complexity
  • Download a PDF Version of This Blog

1. Mortgage Rates Will Gradually Decline 

First of all, there’s finally some good news on the mortgage front: rates are expected to continue their downward trend this year. 

As the labor market softens and mortgage spreads return to more typical levels, the average 30-year fixed rate has come down from the mid-7% highs of 2023-2024 to the low-to-mid 6% range

While we won’t see a return to the sub-3% rates of the pandemic era, the National Association of REALTORS® (NAR) forecasts that rates will average around 6% this year, with other predictions ranging from 5.75% to 6.75%. 

That may seem like a modest shift, but one that can still have a significant impact. In fact, just a one-point drop in rates can open the door for 5.5 million more buyers to afford a home. As NAR Chief Economist Lawrence Yun puts it, “Lower mortgage rates will save the day.” Here’s hoping that’s the case.

2. Inventory Will Grow as the “Lock-In Effect” Fades

Speaking of lower rates, this is leading to another positive outcome: the dreaded “lock-in effect” is finally loosening its grip. 

Millions of homeowners have spent the past few years understandably clinging to those ultra-low mortgage rates from 2021. But recently, the number of U.S. homeowners who carry mortgages with rates above 6% once again outrank those with rates below 3%. 

This signals that homeowners are rethinking what it costs to stay put. Plus, years of price appreciation have allowed many homeowners to build up serious equity, helping them to fund their next move.

At the same time, we’re also seeing a small boost in new construction. The National Association of Home Builders (NAHB) Chief Economist Robert Dietz expects a 1% gain in both single-family construction and new home sales thanks in part to lower financing costs for construction and development loans. 

Still, overall inventory remains short by millions of homes, which will continue to put a damper on affordability. 

3. Affordability Will Remain a Challenge for First-Time Buyers

As we’ve stated, affordability will generally improve this year. But for first time-homebuyers? It’s still going to be an uphill climb. 

For one thing, the income required to buy a typical home now exceeds six figures, putting ownership out of reach for many Gen Z buyers and young families. In fact, first-time buyers now make up just 21% of the market with the median age climbing to 40, the oldest on record. 

Another layer of pressure? Rising home insurance costs, which have gone up 24% since 2021. Many buyers rank insurance premiums right alongside mortgage rates and home prices as key factors when deciding whether to move forward on purchasing a home. 

While some experts predict fewer sharp premium increases this year, it’s still one of many hurdles that will continue to make it difficult for potential homeowners to put down roots.

4. AI Will Become Even More Integral to Operations (and Everyday Life) 

When generative AI emerged a few years ago, many of us weren’t sure what to make of it. Was it just the latest tech fad? A silver bullet solution for all our problems? Our replacement? 

Fast forward to today and the answer is clear: AI is not only here to stay, it’s fundamentally reshaping how we communicate, process information, and get work done across nearly every industry. So, yes, we expect that trend to continue. After all, AI is already helping title professionals with data entry and automation, client communication, document processing, fraud detection, and more. 

And that’s just during work hours. Many are using AI as their own personal assistant, taking on the repetitive, time-consuming, or mentally draining tasks that slow us. Need help with meal planning? Brainstorming gift ideas for your spouse? Learning a new language? There’s an AI for that. As these tools get smarter and more intuitive, the line between “technology that supports us” and “technology that actively collaborates with us” will continue to blur.

For title and settlement professionals still avoiding it? Don’t fall behind.

If you need a helpful starting point, read our two-part AI blog series or watch our Saved You a Seat Episode 65: AI in Title: Innovation, Risks, & Best Practices.

5. Fraud Will Continue to Escalate, and Demand Earlier Stage Detection

Real estate fraud isn’t slowing down. In fact, even as the number of transactions dipped over the past few years, fraud has only become more concentrated and coordinated, with fraudsters growing smarter and attacking even earlier in the process.

According to the American Land Title Association and CertifID, the biggest fraud threats of 2026 will include mortgage payoff fraud, seller and borrower impersonation fraud, escrow account takeovers, and compromised communication channels. These are all threats we should be familiar with, but with fraudsters leveraging AI to generate deepfake audio, video, and more sophisticated phishing emails, the stakes are even higher.

This is why early fraud detection is critical right now. The companies that prioritize layered security tools and operational discipline will be the ones positioned to protect their customers as the year progresses.

6. FinCEN’s Anti-Money Laundering (AML) Rule Will Reshape Title Operations

You may have heard… but there’s a big operational disruption coming this spring. Starting March 1, the new FinCEN AML rule will require title and settlement professionals to report on certain residential property transactions. 

The rule requires collecting (and safeguarding) non-public information that title companies don’t typically gather. This will mean rethinking and retooling workflows, updating your systems, training staff, and proactively communicating to customers.

How much this affects your company likely depends on the types of transactions your team handles most. So, now’s the time to look back at the past year or two of your deals to see how many of these would have qualified as reportable. That will give you a clear sense of how to best prepare your team and your systems. 

SoftPro is also actively developing FinCEN AML solutions built to help you streamline that process efficiently and securely.

Policy Changes Could Add New Layers of Complexity

Before we conclude, it’s worth noting that there are a few wildcards in the mix that could shake up the real estate landscape in ways that are hard to fully predict.

One that has been in the headlines recently is leadership at the Federal Reserve. With Chair Jerome Powell’s term ending in May, markets are watching closely for his potential replacement. Depending on how aggressively this new incoming chair cuts rates, it could have ramifications on both mortgage rates and inflation. 

On the housing policy front, the Trump administration has floated several ideas to improve affordability, including the recently announced executive order seeking to limit large institutional investors from buying single family homes. There’s also been talk of expanding use of retirement savings for down payments and “portable” mortgages that travel with the buyer, and even 50 year mortgages.

While some believe these moves will help with affordability, others maintain they could have unintended detrimental consequences and introduce even more operational hurdles for title professionals. 

The Bottom Line 

Hopefully, 2026 is “the great housing reset” we’re all hoping for, but no matter what the future holds, staying ahead will require more than just optimism. It will take preparation, adaptability, and the right tools to navigate what’s next. 

That’s why it’s essential to have the right partners by your side. SoftPro remains committed to providing easy-to-use, evolving software that fits your needs. No matter the size of your agency, our customizable solutions are designed to give you the edge in a competitive, evolving market.

Be sure to subscribe to our blog to stay up-to-date on all the regulatory updates, events, and industry news that will shape 2026 and beyond. 

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