AI tools surge as Americans grapple with soaring mortgage rates and tight housing supply

Mortgage rates climbed to 6.95% on a 30-year fixed loan, pushing many prospective owners out of the market as housing inventory remains scarce. Survey data show AI adoption rising among both consumers and real-estate professionals: 72% of LendingTree respondents would employ AI for some aspect of buying or selling, and over a third would entrust AI with most of the purchase process. The most popular applications involve budgeting tasks such as home-value estimates, down-payment assistance searches and affordability calculations.

Bank of America’s 2026 Homebuyer Insights Report echoes these trends, noting that 57% of AI-using buyers focus on affordability and cost estimates, with Gen Z leading usage. Real-estate platforms like Zillow and Homes.com have launched AI assistants to guide users through financing and neighborhood data, while 92% of agents reported using or planning to use AI, primarily for efficiency. Nonetheless, agents express concerns about AI accuracy, legal compliance and the risk of misleading listings, as illustrated by a New York City broker’s experience with AI-generated staging that turned off a buyer.