Introduction There is rare good news for the housing market this week. As of February 12, 2026, Freddie Mac reports that the 30-year fixed-rate mortgage has dipped to 6.09%. This marks a significant improvement from the 6.87% rate seen exactly one year ago and represents a three-year low for borrowing costs.
The Inventory “Sweet Spot” Bolstered by strong economic growth and a stable labor market, housing affordability is finally seeing a measurable uptick. Current data shows that purchase application activity is significantly higher than last year. For buyers, the 2026 “Spring Season” is arriving early. Inventory is up 20% year-over-year, and builders are increasingly offering mortgage rate buydowns to clear their standing stock, with some new home prices hitting 4-year lows near $392,300.
Regional Focus: The West Coast Softening While national prices are projected to remain flat (0% growth) through 2026, regional divergences are clear. The Sun Belt and West Coast are seeing the most significant seller concessions as inventory growth outpaces demand. For the first time in the 2020s, buyers have enough leverage to negotiate on inspections and repairs, a trend we expect to hold through the first half of the year.