Murfreesboro Real Estate Report: Mortgage Portability and the 2026 Housing Forecast

The Murfreesboro Real Estate Report is back with another clear look at what is happening across Rutherford County and Middle Tennessee. This week, we are breaking down the latest market numbers, explaining the growing discussion around mortgage portability, and looking ahead at what experts expect for the 2026 housing market.

If you want the full charts and visuals, you can watch the complete update on YouTube here:
Watch the full Murfreesboro Real Estate Report episode on YouTube.

Active Inventory Holding Steady in Rutherford County

Rutherford County began the week with 1,523 active homes, almost unchanged from the previous week. The small dip fits our normal seasonal pattern as we move toward the holidays.

This Week’s Market Snapshot

• New Listings: 106
• Pendings: 96 (a strong rebound from last week)
• Closings: 68
• Withdrawn/Expired: 83
• Three-Month Closings: Just over 1,300 homes sold
• Months of Inventory: 3.4 months (a steady, balanced market)

Even though activity is lower than in the peak years, today’s market is stable and predictable, which is healthy for both buyers and sellers.

New Listings Compared to Last Year

For most of 2025, new listing activity has trailed 2024. This week, however, we saw nearly 30 more new listings than the same week last year. That bump gives buyers a bit more to choose from and shows that some homeowners are still ready to make a move.

Pending Sales Rebound After an Unusually Slow Week

Pendings have been running below 2024 levels for the past several months, but this week brought a solid rebound. While the overall increase is modest, it is an encouraging sign of steady movement in a time of year that can often be quieter.

Inventory Trends: The Year in Perspective

Rutherford County started 2025 with just under 1,100 active homes. Inventory increased through the year and has now leveled off around 1,500 to 1,550 homes, which is still considered low for a county this size.

This low supply continues to keep home prices stable, even as the market returns to a more normal pace.

Mortgage Portability: A Possible Breakthrough for Locked-In Homeowners

One of the most important topics right now in real estate is mortgage portability. Canada already uses it, and it is now being discussed in Washington as a way to unlock more movement in the housing market.

What Is Mortgage Portability?

Mortgage portability would allow homeowners to take their existing low-rate mortgage with them to a new home and then “blend” it with a smaller portion borrowed at today’s rate.

Here is a simple example:

• Current mortgage: $250,000 at 2.75%
• New home requires: $400,000 total mortgage
• Additional amount: $150,000 at about 6%
• Blended rate: roughly 4% on the full $400,000

Instead of giving up a 2.75% loan and jumping to a full 6% loan, a borrower could end up somewhere in the 4% range by blending the two. That makes moving far more realistic for many homeowners who feel stuck.

Why Mortgage Portability Matters

If mortgage portability is approved in the United States, it could:

• Free up “locked-in” homeowners who want to move but fear higher rates
• Increase available inventory, especially in move-up price ranges
• Improve affordability for first-time buyers as more homes hit the market
• Help prices normalize without a crash

The most likely resistance would come from the banking and lending industry, but for consumers, mortgage portability would be a major win.

2026 Housing Forecast: What Experts Expect

Looking toward 2026, the data suggests a slow but steady improvement in both activity and affordability, not a return to the frenzy of 2021.

Mortgage Rates

Mortgage rates have already come down from around 7% earlier this year to roughly 6.2% now. Most forecasts expect rates to stay in the 5.75% to 6.0% range through the next 6 to 12 months.

A return to 3% or 4% mortgage rates is not realistic based on what we see today.

Affordability Is Improving

• The median monthly mortgage payment is down about $350 since May.
• Wages have been rising faster than usual.
• Home prices have leveled off and, in some markets, softened slightly.
• Overall home affordability is now at its best level in more than 2.5 years.

Sales Volume and Turnover

Nationally, the market is on track for about 4.8 million home sales this year. Forecasts for 2026 call for:

• 10% to 20% more home sales, depending on the model
• More homeowners deciding to move because of life changes rather than waiting on rates
• Inventory continuing to build slowly, but still staying below long-term norms

Price Reductions in Rutherford County

Across Tennessee, about 24% of homes on the market have had a price reduction. In Rutherford County, that number is closer to 41%. This does not signal a crash. It is a sign that sellers and agents are adjusting to a more normal market after several overheated years.

Does Buying Now Still Make Sense?

Even in a more balanced market, buying can still be a smart long-term move. On a $400,000 home, a buyer could build more than $60,000 in equity over the next five years with modest appreciation.

While every situation is unique, equity growth over time is still one of the strongest financial benefits of homeownership.

Watch the Full Murfreesboro Real Estate Report on YouTube

If you would like to see all of the charts, graphs, and visuals that go with this update, you can watch the full episode on our YouTube channel:

Watch the full Murfreesboro Real Estate Report: Mortgage Portability and the 2026 Housing Forecast

Thinking About Buying or Selling in Middle Tennessee?

Whether you are thinking about buying, selling, relocating, or just staying informed about the Murfreesboro and Rutherford County real estate market, our team is here to help. My wife Tracy and I lead the Turner Victory Team at Onward Real Estate, and we study the local market every single day.

If you want to talk through your options or have questions about the data, we would be honored to help.

Contact the Turner Victory Team at Onward Real Estate

Office: 615-234-5020
John’s Cell: 615-586-0900
Email: John@TurnerVictory.com
Website: https://www.TurnerVictory.com

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If you are planning a move in or out of Rutherford County or anywhere in Middle Tennessee, reach out. We are here to help you make a confident, informed decision.

For the full archive of our weekly Murfreesboro Real Estate Market Reports, visit our main Market Report Hub.