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% this week—it’s lowest level since September 2022—and it’s 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.
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 1.5% from a year ago, according to the Realtor.com® January 2026 Rental Report.
Improved rental construction has led to rising rental vacancy among the 50 largest markets, and 22 markets are seeing renter-friendly conditions. A similarly sized set of markets is in balanced territory, while just six markets are in landlord-friendly territory.
While I was in Orlando for the International Builders’ Show earlier this week, the latest Realtor.com December new-construction data was released, reinforcing the idea that activity in the multifamily sector is increasing even as single-family construction has waned.
Annual figures for permits, starts, and completions all fell short of 2024 levels, but a breakdown by property type reveals that single-family homes drove the decline in starts and permits. Multifamily starts and permits actually rose in 2025. Completions saw more widespread declines except among multifamily 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% in the month, reflecting subdued buyer activity and likely lingering winter storm impacts. Contract signings ebbed modestly year over year, with regional variation: Activity was 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 Realtor.com housing trends data report. 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. Although price softness can be a reflection of more sluggish housing demand, it could also motivate aspiring homebuyers to take another look at the market in the months ahead, especially when combined with recently low mortgage rates.
Together, these factors will improve housing affordability and may spark enough sales to end the four-year streak of progressively more sluggish spring buying seasons.