Lower Mortgage Rates and Inventory Improvements Increase Affordability
Wisconsin REALTORS® Association Releases February 2026 Real Estate Report
Madison, Wis. – The Wisconsin REALTORS® Association released its February 2026 Real Estate Report today, showing that lower mortgage rates, coupled with inventory improvements, are increasing affordability.
Existing home sales fell 1.2 percent compared to February 2025, while the statewide median home price rose 3.7 percent to $315,000. New listings increased 4.6 percent over the past 12 months, pushing total listings up 1.2 percent compared to February 2025. Despite these gains, housing supply remains tight, with just 3.1 months of available inventory statewide, well below the six-month level typically considered balanced.
Lower mortgage rates also contributed to improved affordability. The average 30-year fixed mortgage rate fell from 6.84 percent in February 2025 to 6.05 percent in February 2026, helping drive the Wisconsin Housing Affordability Index to its highest level in more than two years.
Amy Curler, 2026 Chair of the Board of Directors, Wisconsin REALTORS® Association, noted that “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.”
Tom Larson, President & CEO, Wisconsin REALTORS® Association, stated, “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.”
Dave Clark, Professor Emeritus of Economics and Wisconsin REALTORS® Association Consultant, highlighted, “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.”
REPORT HIGHLIGHTS:
- Existing home sales declined 1.2 percent compared to February 2025, while the statewide median price increased 3.7 percent to $315,000.
- New listings rose 4.6 percent year over year, contributing to a 1.2 percent increase relative to February 2025.
- Months of available inventory remained tight at 3.1 months statewide, continuing Wisconsin’s strong seller’s market.
- The average days on market rose 6 percent, from 84 days in February 2025 to 89 days in February 2026.
- The average 30-year fixed mortgage rate declined from 6.84 percent to 6.05 percent over the past year, helping push the Wisconsin Housing Affordability Index up 5.9 percent to its highest level in more than two years.
About the WRA
The Wisconsin REALTORS® Association (WRA) is one of the largest trade associations in the state, headquartered in Madison, Wis. The WRA represents and provides services to more than 17,500 members statewide, made up of real estate sales agents, brokers, developers, appraisers, inspectors, bankers and other professionals who touch real estate. The WRA is under the direction of a statewide board of directors, comprised of members from the top real estate firms around the state.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
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