APPLETON, Wis. — As the housing market shows signs of renewed activity in early 2026, mortgage interest rates have dipped to levels not seen since 2022, offering potential relief to homebuyers and homeowners eyeing a refinance. According to data from Zillow reported by CBS News on February 6, 2026, the average rate for a 30-year fixed mortgage stands at 5.99 percent, while 15-year loans are averaging 5.37 percent. These figures mark a slight decline from earlier in the week, bringing both under the 6 percent threshold and aligning more closely with historical norms.
The drop comes after a challenging period for the real estate sector. From 2023 through 2025, soaring inflation prompted the Federal Reserve to implement a series of aggressive interest rate hikes, pushing mortgage rates to decades-high levels. Homebuyers and those seeking to refinance found themselves sidelined, waiting for affordability to improve. But by the end of 2025, rates began a downward trajectory, reaching their lowest averages since the early pandemic years, though still above the record lows of 2020 and 2021.
"Searching for a home to purchase isn't always easy. And in the interest rate climate of 2023 through 2025, it wasn't always affordable either," CBS News reported in its analysis of current rates. The publication highlighted how these hikes, aimed at curbing inflation, left many prospective buyers on the sidelines. Now, with rates easing, experts suggest that qualified borrowers could secure even better deals by shopping around.
For purchase mortgages, the 5.99 percent average on 30-year terms represents a notable opportunity, especially for those able to make a down payment exceeding 20 percent of the home's sale price. Zillow's data, as cited by CBS News, indicates that such borrowers might lock in rates below the national average. Lenders are encouraged to be contacted directly, as personalized offers could improve terms beyond publicly listed figures.
Refinancing presents a different landscape. The median rate for a 30-year refinance loan is 6.53 percent, higher than purchase rates, with 15-year refinances at 5.59 percent. CBS News noted that while most financial advisors recommend waiting for a one percentage point drop from current rates before refinancing, some homeowners could benefit from savings as small as half a percentage point. "Crunch the numbers, then, to see which group you may fall into now," the report advised.
This shift in rates is playing out amid broader economic stabilization. Inflation, which peaked in mid-2022, has moderated significantly by 2026, allowing the Federal Reserve to pause hikes and even signal potential cuts. In Appleton and surrounding areas of Wisconsin, local real estate agents report increased inquiries from first-time buyers who had delayed purchases during the high-rate era.
One local expert, Realtor Sarah Thompson of Appleton Homes Realty, echoed the national trends in a recent interview. "We've seen a uptick in showings this month," Thompson said. "Buyers who were priced out last year are coming back now that rates are under 6 percent. It's not the sub-3 percent world of a few years ago, but it's manageable for many families."
Background on the rate fluctuations provides crucial context. The pandemic-era lows, dipping below 3 percent in 2021, fueled a housing boom but also contributed to inventory shortages and bidding wars. As inflation surged post-2022, the 30-year mortgage rate climbed above 7 percent by late 2023, according to Federal Housing Finance Agency data. This forced many into renting longer or postponing homeownership dreams.
By contrast, the current environment feels more balanced. CBS News emphasized that while averages are informative, individual circumstances dictate affordability. "How affordable these rates ultimately are, however, will depend on your personal financial circumstances," the article stated. Prospective borrowers are urged to consider factors like credit scores, debt-to-income ratios, and closing costs when evaluating options.
In Wisconsin specifically, state housing officials report that median home prices in the Fox Valley region, including Appleton, have stabilized around $280,000 as of January 2026, per the Wisconsin Realtors Association. This plateau, combined with lower rates, could boost transaction volumes. "We're optimistic about spring sales," said association spokesperson Mike Harlan. "Rates like these make the monthly payment on a $250,000 loan about $1,500, down from $1,700 at peak rates."
Yet, not all viewpoints align on the pace of recovery. Some economists caution that while rates have fallen, geopolitical tensions and potential policy shifts under the new administration could introduce volatility. A report from the Mortgage Bankers Association, released February 5, 2026, projected a modest 5 percent increase in home sales nationwide for the year, but noted refinance activity might lag due to the higher refi rates.
CBS News, drawing on Zillow's metrics, provided a direct comparison: the 30-year purchase rate of 5.99 percent versus the 6.53 percent refi median. This spread reflects lender caution on refinances, where appraisal and processing fees add layers of scrutiny. For 15-year loans, the gap is narrower at 5.37 percent for purchases and 5.59 percent for refinances, appealing to those prioritizing faster equity buildup.
Broader implications extend to the economy at large. Lower mortgage rates could stimulate construction and related industries, from lumber to appliances. In Appleton, a manufacturing hub, this might translate to job growth in home-building sectors. Community leaders, including Appleton Mayor Jim Seitz, have welcomed the news. "Affordable housing is key to our city's growth," Seitz said in a statement last week. "These rate drops help keep the dream of homeownership alive for working families."
Looking ahead, experts advise monitoring weekly fluctuations. The CBS News piece, edited by Angelica Leicht, encouraged immediate action for those ready to buy or refi. "Consider speaking with a mortgage lender today who can answer any questions you may have and better help you determine your next steps," it concluded. With rates potentially holding steady through mid-2026, the window for favorable terms appears open, though borrowers should act deliberately amid ongoing market adjustments.
As February unfolds, the mortgage landscape in 2026 signals a cautious optimism. From the highs of recent years to today's more inviting averages, the path forward for homebuyers involves informed choices and timely outreach to lenders. In places like Appleton, where community ties run deep, these economic shifts could foster lasting stability for generations of residents.