Inventory Is Rising. Prices Are Adjusting. Leverage Is Shifting

February 23, 2026 | Kevin Brierton Team | ,

Inside Lending For the week of February 23, 2026

 QUOTE OF THE WEEK

“Opportunity is missed by most people because it is dressed in overalls and looks like work.”—Thomas Edison, American inventor

NATIONAL MARKET UPDATE

While Existing home sales cooled in January amid challenging weather conditions, affordability continues to improve, positioning the market for steadier activity this spring as conditions normalize. Housing starts pulled back last year, yet builders are identifying early signs of renewed momentum. As market conditions stabilize, construction activity could gradually strengthen in the months ahead.

Homes are spending more time on the market, giving buyers added negotiating flexibility. Sellers are recalibrating expectations to match today’s pace, creating a more balanced transaction environment.

REVIEW OF LAST WEEK

BACK-AND-FORTH TRADING…Markets reacted to inflation data and geopolitical headlines, including a Supreme Court ruling related to tariffs. While volatility surfaced early, major indexes stabilized by week’s end.

Treasury yields initially moved higher following the tariff decision, pressuring bonds and mortgage-backed securities. However, much of that move reversed later in the week as investors digested the broader economic impact.

Meanwhile, inflation data showed continued moderation, and bond markets ultimately improved enough that many lenders were able to modestly lower rate offerings by Friday.

The week ended with the Dow up 0.5%, to 49,626; the S&P 500 up 0.7%, to 6,910; and the Nasdaq up 0.9%, to 22,886.

Bond markets finished the week stronger overall after reversing early volatility. Mortgage-backed securities erased most initial losses, and average lender pricing edged slightly lower, hovering near some of the best levels seen in the past three years. Freddie Mac reported minimal movement in the national average 30-year fixed mortgage rate in its Primary Mortgage Market Survey.

DID YOU KNOW…The median listing price declined 2.9% year over year, marking the largest weekly drop recorded since Realtor.com began tracking this metric in 2018.

 FORCAST THIS WEEK

NEW AND PENDING HOME SALES, CONSUMER CONFIDENCE, INFLATION…This week brings updates on Pending Home Sales and Consumer Confidence, along with fresh inflation data that could influence market expectations. Economists will be watching whether contract activity reflects steady buyer engagement and whether moderating price pressures continue supporting stability. Any signs of sustained demand could reinforce momentum as the spring market approaches.

FEDERAL RESERVE WATCH

Forecasting Federal Reserve policy changes in coming months. Markets continue to expect policymakers to hold steady in the near term while evaluating inflation and labor trends, with attention focused on upcoming economic reports for further direction. Note: In the lower chart, the 4.1% probability of change is a 95.9% probability the rate will stay the same. Current rate is 3.50%–3.75%.

BUSINESS TIP OF THE WEEK

As inventory improves and buyers regain leverage, proactive communication matters more than ever. Share timely market updates with your clients to position yourself as the steady guide in a shifting environment.

Markets are shifting from urgency to opportunity.

When inventory improves and pricing adjusts, strategy matters more than speed. The buyers and homeowners who win in this environment are the ones who prepare before competition returns.

In a Mortgage Strategy Call, we will:

  • Evaluate how today’s inventory and pricing trends impact your leverage
  • Review current rate positioning and payment options
  • Build a proactive plan so you’re ready when the right property or refinance opportunity appears

📅 Schedule your Mortgage Strategy Call and move into spring with clarity, confidence, and no excuses.