February 20, 2026
Overview
Reports and articles referenced
Housing data for download
VIDEO TRANSCRIPT:
- Mortgage rates just dropped to 6.01 percent–their lowest level in three and a half years. I’m Danielle Hale, Chief Economist at Realtor.com® and I’ll share what this means for buyers and sellers plus what we’re seeing in the rental market.
- According to the January 2026 Rental Trends Report, rents continue to soften nationwide. January marked the 29th straight month of year-over-year rent declines for 0- to 2-bedroom units, with the median asking rent across the 50 largest metros down about 1½ percent from a year ago.
- Improved rental construction has led to rising rental vacancy among the 50-largest markets and in 22, renter-friendly conditions. A similar sized set of markets is in balanced territory while just 6 markets are in landlord-friendly territory.
- While I was in Orlando for the International Builders Show earlier this week, the latest December new construction data were released that reinforce the idea of more activity in the multi-family sector even as single-family construction waned. Annual figures for permits, starts, and completions all fell short of 2024 levels, but breaking down by property type reveals that single-family homes drove the decline in starts and permits. Multi-family starts and permits actually rose in 2025. Completions saw more widespread declines except among multi-family homes in the Northeast.
- Looking at existing-homes, we saw more evidence of a slow start to the year. Pending home sales dipped in January, falling just less than 1 percent in the month, reflecting subdued buyer activity and likely lingering winter storm impacts. Contract signings ebbed modestly year over year, with regional variation: weaker in parts of the Northeast and Midwest, with modest gains in the South and West.
- I’m watching for evidence that the weather impacts will fade and saw some in this week’s housing trends data. New listings grew for the first time in several weeks. The jump wasn’t enough to spark a big shift in the active inventory trend, which continues to climb at a slower pace from one year ago, but it’s worth watching. Another interesting development is the ongoing softness in the median listing price trend, which dropped yet again.
- Price softness is likely welcome news for buyers and it comes on the heels of another market-friendly development for both buyers and sellers: a 3.5-year low in mortgage rates! The Freddie Mac 30-year fixed rate slipped to 6.01 percent this week, down from 6.85% just one year ago. That’s enough to boost purchasing power by roughly 9% or $36,000 for a median home buyer, a very helpful trend if it sticks around through the spring buying season.
- You can find all the details, including full reports and our housing data for download, at realtor.com/research. You can also follow us on X (formerly twitter) for real time updates. And instagram for graphics.
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