The average contract rate on 30-year fixed-rate mortgages for conforming loans of $806,500 or less in the US declined to 6.09% in the week ended February 20th, 2026, from 6.17% in the previous week, according to the Mortgage Bankers Association. This marked the second consecutive weekly decrease and the lowest level since early September 2022.
Despite the drop in borrowing costs, overall mortgage applications rose only 0.4%, following a 2.8% increase in the prior week. Refinancing applications climbed 4.1%, while applications to purchase a home fell 4.7%.
While easing mortgage rates are providing some relief to affordability pressures, home prices remain slightly above their levels of a year ago, and ongoing economic uncertainty continues to weigh heavily on consumer sentiment.
