Mortgage Rates Tick Down Slightly and Inventory Grows, Giving Buyers Leverage

The partial government shutdown added some uncertainty to the housing market. It ended on Feb. 3, but much of the country was also hit with a major winter storm, adding to a market trying to find its footing, according to the Realtor.com® Weekly Housing Trends report.

Mortgage rates for a 30-year fixed home loan is 6.09% for the week ending Feb. 12, according to Freddie Mac. The latest housing trends report explains that while rates did not plummet, with the Federal Reserve holding interest rates steady in January, the steadiness provides a baseline for buyers still deciding whether to make a home purchase.

The report says the homeownership rate edged up to 65.7% in the fourth quarter of 2025, driven in part by younger households making meaningful gains. Still, sellers are holding back and the market is tipping in the buyer's favor with lower prices and less competition.

Home inventory trends

The number of homes for sale remains above last year’s levels. Active listings rose 7.5% year over year. This is giving buyers more options, but the pace of inventory growth has slowed compared to last month, reflecting the recent drop in new listings.

Not as many new homes were listed. New listings, which are a measure of sellers putting homes up for sale, dropped 8.5% year over year. It was better, though, than the prior week, when much of the country was dealing with a winter storm. The report explains that sellers "seem to be waiting for calmer waters before testing the market, limiting the influx of fresh inventory for early February shoppers."

At the metro level, 46 of the 50 largest markets recorded year-over-year inventory growth (active listings were down very slightly in Jacksonville, San Francisco, Chicago, and Grand Rapids, MI). The sharpest increases were seen in Seattle (+32.4%), Charlotte, NC (+28.6%), and Washington, DC (+26.8%), according to the Realtor.com Monthly Housing Trends Report.

More active listings and more new homes being put up for sale are both contributing to the market tilting in favor of buyers.

All of the homes on the market are sitting longer—eight days longer than the same time one year ago. This is an increase from the six-day gap that was seen in January. Realtor.com economists explain the extended time on the market "goes beyond normal seasonal cooling, indicating a fundamental shift in buyer urgency."

The median list price for a home dropped for a second straight week—2.4% compared to the prior year. The report reveals this consistent decline represents a significant adjustment in seller expectations—meaning they're adjusting to a market with slower sales and price-sensitive buyers.