The average monthly 30-year fixed mortgage rate fell to 6.05% in February 2026, which is 79 basis points lower than the 6.84% average rate a year earlier.

New listings rose 4.6% over the last 12 months, pushing total listings back into positive annual growth after a slight decline in January that ended 28 straight months of gains.

Homes that sold in February remained on the market longer than a year earlier, with average days on market rising 6% from 84 days in February 2025 to 89 days in February 2026.

Inventory remained tight despite improving listings, with just 3.1 months of available supply in February — well below the six-month benchmark that signals a balanced market — indicating the state continues to have a strong seller’s market.

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