Real Estate Rundown February 2026
February 01, 2026
Photo by Getty Images via Unsplash
New Listings On The Rise
New listings and buyer activity are beginning to show signs of improvement, offering cautious optimism for the housing market. New listings rose about 1% year over year in late January—the first increase in more than two months—as easing housing costs and lower mortgage rates encourage both buyers and sellers to re-enter the market. Pending home sales remain slightly lower than last year but are improving, with mortgage-purchase applications near their highest level in three years. Despite this momentum, homes are taking longer to sell, averaging 63 days to go under contract—the slowest pace in six years—reflecting a buyer-friendly market with more listings and fewer bidding wars. Buyers are taking a more deliberate approach, while sellers are increasingly adjusting expectations through price reductions and concessions to remain competitive.
Mortgage Rates Stay Close To 2025 Lows
Mortgage rates have seesawed in recent weeks as shifting economic and global factors pulled rates in opposite directions. Initial declines followed news that government-sponsored enterprises would purchase $200 billion in mortgage-backed securities, increasing demand and narrowing the spread between mortgage rates and Treasury yields. That progress was partially reversed as geopolitical tensions sparked a bond market sell-off, pushing yields and mortgage rates back up. Despite the volatility, mortgage rates remain near their 2025 lows, and Zillow projects a gradual move toward 6% by the end of 2026. As rates stabilize and home-price growth moderates, affordability is expected to slowly improve, potentially bringing more buyers back into the housing market.
Pending Contracts Slow
Pending home sales fell sharply in December, dropping 9.3% from November and 3% year over year, despite mortgage rates declining to an average of 6.19%. The pullback interrupted several months of improving market momentum and raised new questions about buyer confidence. While lower rates helped boost closed home sales to their strongest pace in nearly three years, fewer buyers were signing new contracts—largely due to tight inventory. Existing-home supply fell 18% month over month in December, limiting options for shoppers and dampening demand across all regions. Economists note that seasonal factors and winter weather may have played a role, and with inventory typically improving in early February, the coming months will reveal whether December’s slowdown was a temporary winter dip or a sign of broader market challenges.
Looking for real estate market data? Learn more at FMAdata.com or call 833-410-3282 today.
