Prospective homebuyers face continued affordability challenges as housing market conditions are expected to remain difficult. Goldman Sachs economist Ronnie Walker predicts that mortgage rates will stay elevated through next year, with only marginal decreases predicted. National home prices are also forecasted to see modest increases, disappointing those hoping for significant price drops. The housing market is currently experiencing an ultra-low turnover environment due to high borrowing costs and limited affordability. Many potential buyers are remaining on the sidelines because of these persistent affordability issues. Residential investment has faltered due to poor weather and a sharp rebound in mortgage rates earlier in the year. Higher mortgage rates are significantly impacting housing turnover because most existing borrowers have lower rates. This "lock-in" effect means selling and buying a new home at a much higher rate is financially costly. Single-family homebuilding has been surprisingly resilient despite higher interest rates due to a longstanding housing shortage. However, improved supply-demand balances and compressed builder margins have led to a moderate slowdown in new home starts. Despite some positive signs like improved purchase intentions, weak income growth and reduced immigration are expected to temper housing demand. A Federal Reserve Bank of Dallas report also suggests that immigration-driven demand has worsened housing affordability. In summary, 2027 is shaping up to be another year where affordability concerns prevent many from achieving homeownership.