Thirty-year mortgage rates fell to 6.2% this week, a small drop from 6.277% the previous week, according to U.S. News data. Mortgage rates have declined steadily over the past month. And while each weekly dip has been modest, if this trend continues, it could push more buyers into the market.
For the week ending on Feb. 13, 2026, mortgage applications increased 2.8% from the week prior, according to the Mortgage Bankers Association. Refinance applications helped drive that uptick.
“Treasury yields ended the week lower as weaker data on retail sales and home sales outweighed better-than-expected readings on the job market for January,” said Joel Kan, MBA’s vice president and deputy chief economist, in the report.
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Home Sales Slowed in January, But Bad Weather May Be to Blame
In January, existing-home sales fell 8.4% on a month-over-month basis, according to the National Association of Realtors. On an annual basis, existing-home sales decreased by 4.4%.
“The decrease in sales is disappointing. The below-normal temperatures and above-normal precipitation this January make it harder than usual to assess the underlying driver of the decrease and determine if this month’s numbers are an aberration,” said NAR Chief Economist Lawrence Yun in a release.
Homes also spent a median of 46 days on the market in January, according to the NAR, up from 39 days the month prior and 41 days a year prior.
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Homes May Be Getting More Affordable
While home sales may have slowed, the good news is that affordability conditions seem to be improving. The NAR’s Housing Affordability Index rose from 111.6 in December to 116.5 in January.
Also notable is that 31% of home sales in January were first-time buyers, up from 29% in December and 28% a year prior. Although mortgage rates have been stuck above 6% since the start of the year, they’ve dropped quite a bit since last summer. That may have opened the door for more first-time buyers to enter the market.
Data from Redfin also supports an improvement in home affordability. The group’s latest report finds that buyers need to earn $111,252 per year to afford the typical U.S. home for sale, down 4% from $115,870 a year ago.
There’s also typically a clear relationship between slower home sales and prices. When homes sit on the market longer, it’s a sign of waning demand. Sellers often compensate by lowering prices, which could drive more buyer activity.
Of course, the wild card factor is whether mortgage rates will continue to fall. Incremental rate drops may not make a huge impact on buyers’ monthly payments. But the closer rates get to the 6% mark, the easier it may be for buyers to wrap their heads around entering the market.
In fact, if rates continue on their current trajectory, we could see an uptick in home sale activity and mortgage applications ahead of the typical spring rush. Buyers who act in the next few weeks could gain negotiating power in the absence of strong competition.
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Mortgage Rates Continue to Fall While Home Sales Slow Down originally appeared on usnews.com