"The outlook for new home construction and purchases appears brighter going into 2026. After contracting last year, housing stats are forecast to rise 3% this year. A few favorable factors are lining up to boost buyer demand. Affordability is improving: wage growth is outpacing inflation, and home prices are moderating. Mortgage rates have trended down by half a point over the last several months, and they could see a further slight decline over the course of this year."
"At the same time, home insurance costs and availability are increasingly a challenge, putting pressure on buyers' monthly payment budgets. Homeowners insurance premiums are up 21% nationally over the past three years, and are expected to rise another 8% in 2026, making them the fastest-growing component of monthly payments (mortgage, taxes, and insurance). Premiums are rising much faster in areas with higher weather-related risks, and some insurers continue to pull back the amount of coverage they write in those areas."
"Now is the perfect time for builders to address this challenge before the spring homebuying rush by teaming up with an insurance agency that can reduce the uncertainty of insurance coverage and pricing for buyers. Embedded insurance the game changer The key to this solution is what's known as embedded insurance integrating an insurance coverage offer directly into the homebuying process and workflow and it's remaking how insurance is provided in new home communities."
Housing activity is expected to rise 3% in 2026 after last year's contraction, supported by improving affordability, moderating home prices, and wage growth outpacing inflation. Mortgage rates have fallen about half a percentage point recently and may decline slightly further, easing buyer costs and helping builders finance new community projects. Pent-up winter demand could strengthen the spring market. Homeowners insurance premiums rose 21% nationally over three years and may increase another 8% in 2026, straining monthly budgets and rising faster in high weather-risk areas where insurers are reducing coverage. Embedded insurance integrates coverage offers into homebuying workflows to reduce timing, availability, and pricing uncertainty, benefiting builders and first-time buyers.
Read at www.housingwire.com
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