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
About the WRA
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 17,500 real estate brokers, salespeople and affiliates statewide. All county figures on sales volume and median prices are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted. Median prices are only computed if the county recorded at least 10 home sales in the quarter. All data collected by the WRA is subject to revision if more complete data becomes available. Beginning in June 2018, all historical sales volume and median price data from 2015 forward at the county level have been re-benchmarked using the Relitix system that accesses MLS data directly and in real-time. Data prior to January 2015 is derived from the Techmark system that also accessed MLS data directly. The Wisconsin Housing Affordability Index is updated monthly with the most recent data on median housing prices, mortgage rates and estimated median family income data for Wisconsin. Data on state foreclosure activity is compiled by Dr. Russ Kashian at the University of Wisconsin-Whitewater.
Note that the WRA employs a slightly different protocol to determine inventory levels than the protocol used by the REALTORS® Association of South Central Wisconsin (RASCW). For consistency, the summary tables for the South Central region reported in the WRA release employ the WRA approach. However, a modified table employing the RASCW methodology is available from the WRA upon request.