Market Spotlight #196 | Why Timing Matters More Than Rates

In late January 2026, the housing market is sending a clear message: timing and strategy are more important than chasing the perfect rate. Mortgage rates remain contained near 6.2%, only slightly higher than the prior week and significantly lower than this time last year. Demand, however, is picking up speed. Purchase applications are up more than 5% week‑over‑week and nearly 20% year‑over‑year, and pending sales are up strongly on both counts as well. Buyers aren’t waiting for mortgage rates to collapse—they’re responding to a stable range and better choices.

On the supply side, new listings and total inventory are both higher than last year, and about one‑third of active listings still see price reductions. That mix gives buyers leverage, but it’s a leverage window that will narrow as demand continues to rebuild into spring. Elevated inventory doesn’t last forever, especially once more buyers decide the current mortgage rate range is “good enough” to move forward.

For agents and loan officers, the key conversation this week is about planning inside the range, not sitting on the sidelines waiting for a dramatic rate move that may never come. Help buyers understand that locking in a home when inventory is plentiful and competition is lighter can matter more than squeezing out another eighth off the rate. With demand clearly trending up and rates still historically reasonable, the advantage leans toward proactive buyers who make a plan now.