As we move into 2026, interest rates continue to shape the Southern Maine real estate market, influencing buyer affordability and seller strategy across York County communities like Biddeford, Saco, Kennebunk, and surrounding coastal areas. While mortgage rates remain higher than the historic lows of previous years, increased stability is changing how buyers and sellers approach the market.

Mortgage rates entering 2026 are expected to remain generally in the low-to-mid 6% range for many conventional loans, while certain low-down-payment and first-time buyer programs may offer rates in the mid 5% range. While rates may not drop dramatically, increased stability allows buyers and sellers in Southern Maine to plan with greater confidence.

For buyers considering purchasing a home in Southern Maine, modest rate improvements combined with stable pricing can unlock additional buying power. Buyers who are pre-approved and working with local professionals are better positioned to navigate competitive areas like Biddeford, Saco, and coastal York County. Rates vary by loan type, credit profile, and down payment.

For a personalized mortgage rate estimate, here’s a link to a trusted local
lending partner.  https://mainemortgage.com/apply-online/

Sellers across Southern Maine are seeing renewed buyer activity as interest rate stability brings motivated buyers off the sidelines. Proper pricing, professional presentation, and understanding buyer expectations are key to success in today’s market.

Real estate is local, and interest rates affect each Southern Maine community differently.
If you’re curious how current rates impact your home’s value or buying power, I share weekly market updates on my Google Business Profile and local blog.

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