Recent months have seen reason for buyer optimism in the housing market, especially due to falling mortgage rates. The National Association of Realtors® (NAR), in its quarterly affordability report in February 2026, found moderating price growth, while the association has since found existing-home sales ticked up in February as well. Will these positive signs hold?
In NAR’s latest update to its affordability chart—compiling estimated data through February—the median price of an existing single-family home in February 2026 was $401,800. This is slightly higher than in both January, when it was $398,200, and in February 2025, when it was $400,900. However, it is noticeably lower than most monthly prices for the duration of 2025, when it consistently hovered above $400,000 and peaked in June at $438,600.
NAR’s index tracking affordability came in slightly higher last month, indicating a slight improvement in conditions overall, tracking wages, rates, prices and other data. In three out of four census regions, a family earning the median income can qualify for a mortgage on the median-priced home (assuming a 20% down payment).
Mortgage rates also continued a steady decline per this data, coming in at 6.12% in February, down from 6.19% in January and 6.92% in February 2025. The monthly mortgage payment was $1,952, up very slightly from January ($1,949) but down from $2,117 in February 2025. In NAR’s existing-home sales report, declining mortgage rates were cited as a key reason for sales picking up and more buyers entering the market.
Median family income also climbed nationwide to $110,170, up from $109,523 in January and from $104,735 in February 2025. Another key element of mortgage affordability—qualifying income—has seen a largely steady drop since September 2025. The February qualifying income was $93,696, slightly higher than the January figure ($93,552) but lower than a year prior ($101,616) and the peak in June 2025 ($110,928). Lower qualifying income and higher median income could create greater eligibility for mortgage loans among prospective buyers.
Regional breakdown
Of the four major U.S. regions, NAR found the median price of an existing family home in each was as follows, listed from highest to lowest:
- The West – $609,700
- The Northeast – $496,300
- The South – $362,200
- The Midwest – 304,400
Each region’s median family income did not quite correlate to the above regional differences. The differences were also smaller across the four regions compared to median price:
- The Northeast – $122,208
- The West – $120,204
- The Midwest – $106,658
- The South – $102,594
Of these, the West posted a qualifying income ($142,176) that was higher than the median family income. The Northeast posted the second highest qualifying income ($115,728), followed by the South ($84,480) and the Midwest ($70,992).
The West likewise posted the highest monthly mortgage payment of $2,962 (a 29.6% share of income), followed by the Northeast at $2,411 (a 23.7% share of income), the South at $1,760 (a 20.6% share of income) and the Midwest at $1,479 (a 16.6% share of income).
For the full NAR housing affordability index chart, click here.
