September 2026 Home Sales Report
Higher Mortgage Rates Soften September Housing Market
Date: October 22, 2026
September 2026 at a glance
Mortgage rates rose about 0.5% over the last 12 months, resulting in fewer home sales and moderating home price appreciation. Existing home sales fell 2.4% in September relative to September 2025, and the median home price rose just 1.5% to $342,000 over that same period.
The average monthly 30-year fixed mortgage rate rose to 6.86% in September 2026, which is an increase of 51 basis points over the last 12 months. This is the highest mortgage rate since January 2025 when it reached 6.96%.
Year-to-date home sales rose 2.8% compared to the first nine months of 2025, and the statewide median price was up 6% to $346,500 over that same nine-month time span.
Although new listings fell 5.1% over the past 12 months, total listings rose 3.8% between September 2025 and September 2026.
On a year-over-year basis, months of supply improved 2.3% to 4.4 months of available supply in September. In general, months of inventory have been slowly improving since December 2022.
In September, the tightest supply was found in the large metropolitan counties, which had just 4 months of supply. Smaller micropolitan area counties had slightly more inventory at 4.5 months of supply, and the rural counties had 6.1 months of available inventory. Six months of supply is considered a balanced market, so the more urbanized areas remain seller’s markets.
Housing affordability fell 5.5% over the past 12 months. Although the annualized change in median home prices only increased 1.5% in September, which is the slowest annual increase since June 2014, the combination of flat income growth and rising mortgage rates led to the erosion of housing affordability.
Additional analysis
Rising Mortgage Rates Lead to Reduction in Sales
“September closed sales were down by 2.4% even as total listings and months of supply both improved over the last 12 months. The primary reason for reduced sales was rising mortgage rates, which softened buyer demand for existing homes”
Amy Curler, 2026 Chair of the Board of Directors, Wisconsin REALTORS® Association
Spike in Mortgage Rates Impacts Both Buyers and Sellers
“Mortgage rates have reached their highest level since January 2025. If these trends continue, both buyers and sellers will be affected. Specifically, lower affordability obviously hurts buyers, and higher rates also keep potential sellers from listing their homes because they don’t want to give up the very favorable rates locked in over the last six years.”
Tom Larson, President & CEO, Wisconsin REALTORS® Association
The Fed Is Committed to Taming Inflation
“The Fed recently increased the short-term Federal Funds Rate by 25 basis points and signaled that it will closely monitor progress on core inflation. While another hike at the October meeting of the Fed’s Open Market Committee is unlikely given its proximity to midterm elections, an increase at the December meeting would not be surprising if core inflation does not move downward. Lowering inflationary expectations is an important precursor to reducing mortgage rates.”
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.