Mortgage Rates

Back in the 5s — For the first time in three and a half years, the average 30-year fixed-rate mortgage dipped below 6%, landing at 5.98% as of February 26. That’s a meaningful shift from last year, when rates were closer to 6.9%.

This long-anticipated move has boosted affordability, giving homebuyers approximately $34,000 more purchasing power compared to a year ago.

Freddie Mac Primary Mortgage Market Survey®. Rates based on 30-year fixed-rate mortgage.

Homes Prices

Softening in Many Markets — Home prices are beginning to level off, with more sellers reducing asking prices as homes spend additional time on the market. Increased inventory and cautious buyer activity are creating more balance compared to the competitive conditions of recent years.

While prices have not declined dramatically nationwide, the pace of appreciation has slowed, and buyers are seeing more negotiating power present itself in many markets.

Housing Supply

More Options Emerging — Nationwide, the number of homes for sale is currently outpacing active buyers, creating a noticeable inventory gap. In January alone, there were roughly 600,000 more home sellers than buyers across the country.

While supply remains below long-term historical norms, today’s buyers are benefiting from more choice, less competition, and greater negotiating leverage than in recent years.

Market Activity

Measured Momentum — Despite improving rates and rising inventory, overall activity remains somewhat subdued. Pending home sales recently declined year over year, suggesting many buyers are still taking a cautious approach as the spring season begins.

At the same time, sellers are adjusting expectations, with price reductions becoming more common. For prepared buyers, this creates an opportunity to negotiate favorable terms and make thoughtful decisions without the pressure we’ve seen in past markets.