A combination of retreating mortgage rates and a rebound in housing inventory pushed Wisconsin housing affordability to its highest level in more than two years this February. According to the latest report from the Wisconsin REALTORS® Association (WRA), the average monthly 30-year fixed mortgage rate fell to 6.05 percent.

This represents a significant drop of 79 basis points from the 6.84 percent average recorded in February 2025. This downward trend in borrowing costs has provided much-needed relief to buyers, even as the state remains a firm seller’s market.

“The Wisconsin Housing Affordability Index grew at a healthy pace in February,” said Tom Larson, President and CEO of the Wisconsin REALTORS® Association. “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 percent in February 2026.”

Inventory Shows Signs of Recovery

The supply side of the market saw moderate gains last month. New listings rose 4.6 percent over the last 12 months, which helped pull total listings back into positive territory. This growth effectively ended a brief dip in total inventory seen in January and resumed a growth trend that had previously lasted 28 consecutive months.

Despite these gains, the state still faces a shortage of available homes. Wisconsin currently sits at 3.1 months of available supply. This remains well below the six-month threshold typically required for a balanced market between buyers and sellers.

Price Trends and Market Pace

While affordability improved, home prices continued a steady climb. The median home price in Wisconsin rose 5 percent year-to-date, reaching $315,000.

Homes are also staying on the market slightly longer. The average days on the market increased by 6 percent statewide, rising from 84 days in February 2025 to 89 days in February 2026. This slowdown in the pace of sales was felt across all regions, though the intensity varied significantly:

  • The West Region saw the most dramatic change, with days on the market jumping 23.8 percent.
  • The Northeast Region experienced a 10.1 percent increase.
  • The Southeast Region remained the most stable, with a modest 1.4 percent growth in time on the market.

The “Mortgage Rate Trap”

WRA experts noted that while falling rates stimulate demand, they also address a supply-side hurdle known as the “mortgage rate trap.” Many current homeowners are holding onto historically low rates between 2.68 percent and 3.10 percent secured during the pandemic.

As market rates drift toward the 6 percent mark, economists suggest more homeowners may finally be incentivized to sell and use their accumulated equity to move, which would further unlock inventory for first-time buyers.

With mortgage rates dipping below 6 percent in early March, the WRA anticipates a highly active spring market for Wisconsin real estate.