February 2026 Home Sales Report
Lower Mortgage Rates and Inventory Improvements Increase Affordability
Date: March 19, 2026
February 2026 at a glance
- The average monthly 30-year fixed mortgage rate fell to 6.05% in February 2026, which is 79 basis points lower than the average rate of 6.84% a year earlier. This, combined with improvements in both new and total listings, helped moderate
the rate of home price appreciation and drove statewide housing affordability to its highest level in more than two years.
- New listings rose 4.6% over the last 12 months, which pushed the annual growth in total listings back into positive territory in February. Recall that total listings fell slightly in January, ending 28 straight months of growth prior to that point.
Still, this remains a strong seller’s market with just 3.1 months of available supply in February, which is well below the six-month benchmark that signals a balanced existing home market.
- February 2026 home sales fell 1.2% to $315,000 compared to February 2025. On a year-to-date basis, home sales fell 1.8% compared to the first two months of 2025, and the median price rose 5% to $315,000.
- Homes that sold in February 2026 remained on the market longer than those that sold in February 2025. Specifically, the average days on the market rose 6% over the last 12 months from an average of 84 days in February 2025 to 89 days in February 2026.
Regionally, all areas of the state experienced growth in days on the market compared to February 2025, ranging from just 1.4% growth in the Southeast region to between 6.5% and 6.9% increases in the South Central, Central and North regions. Stronger
annual growth rates of days on the market were seen in the Northeast region, which grew 10.1%, and the West region, which increased 23.8%.
Additional analysis
Inventory Rebound
“New listings increased 4.6% in February. This led to a moderate improvement in total listings, which increased 1.2% relative to February 2025. It’s still a seller’s market, but it was good to see a return to the trend of improved annual growth of total
listings first seen in September 2024.”
Amy Curler, 2026 Chair of the Board of Directors, Wisconsin REALTORS® Association
Affordability Improvements Continue
“The Wisconsin Housing Affordability Index grew at a healthy pace in February. Compared to a year ago, family income was up slightly, and home prices grew at a modest pace, but the key factor was the ongoing reduction in the 30-year fixed mortgage rate.
That rate fell just over three quarters of a percent compared to a year earlier and averaged just 6.05% in February 2026. In fact, the rate fell below 6% in early March, which is good news going into the spring market.”
Tom Larson, President & CEO, Wisconsin REALTORS® Association
The Mortgage Rate Trap
“Lower mortgage rates certainly affect housing demand since lower rates make housing more affordable for buyers. However, they also have an important impact on the supply side because there are many current owners who locked in mortgage rates ranging
from 2.68% to 3.10% during the period between August 2020 and December 2021. For homeowners looking to right-size their homes, trading those very favorable rates for rates in the 6% to 7% range has been a tough pill to swallow. However, if rates continue
to drift downward, some owners will be incentivized to use the accumulated equity in their current home to buy a different property, which will help grow inventories for first-time buyers.”
Dave Clark, Professor Emeritus of Economics and WRA Consultant