Mortgage Rates Tick Up, Dampening Demand Despite Persistent Affordability Challenges

Palm Beach Gardens, FL – February 18, 2026 – Mortgage rates experienced a slight increase last week, reversing a month-long downward trend and subsequently cooling demand, according to recent data from the Mortgage Bankers Association (MBA). The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) rose to 6.24% from 6.16%, with points increasing to 0.55 from 0.54.

Mortgage Demand Declines

The MBA’s seasonally adjusted index revealed an overall decrease in total mortgage demand of 8.5% compared to the previous week. Refinance applications were particularly impacted, dropping 16% for the week, although they remain 156% higher than the same week last year due to significantly higher rates in 2025. However, FHA refinance activity bucked the trend, increasing as FHA rates remained approximately 20 basis points lower than conforming rates.

Purchase Applications Remain Stable, But Challenges Persist

Applications for a mortgage to purchase a home were relatively flat, decreasing by 0.4% week-over-week but remaining 18% higher year-over-year. Despite the year-over-year increase, potential homebuyers continue to face a challenging market characterized by high prices. While inventory has increased compared to last year, much of the available supply is concentrated in the higher price ranges.

The average loan size has remained at its highest level since September 2025, indicating a continued trend towards larger mortgages.

Federal Reserve Meeting on the Horizon

Mortgage rates saw a slight decrease at the beginning of this week, according to Mortgage News Daily. The Federal Open Market Committee (FOMC) meeting on Wednesday is anticipated to hold its benchmark interest rate steady. However, market participants will be closely scrutinizing commentary from Federal Reserve Chair Jerome Powell for insights into the future direction of monetary policy.

Industry Resources

The Mortgage Bankers Association of Florida (MBAF) is dedicated to supporting the mortgage banking industry through legislative advocacy and member education. Learn more about the MBAF.

The Florida Association of Mortgage Professionals (FAMP) also promotes and advances the interests of Florida’s licensed loan originators and mortgage professionals through education, advocacy, and networking. Visit the FAMP website.

Key Takeaways

• Mortgage rates increased slightly last week, leading to a decrease in overall mortgage demand.
• Refinance applications experienced a more significant decline, although they remain higher than last year.
• Purchase applications remained relatively stable, but affordability remains a major challenge for homebuyers.
• The Federal Reserve’s upcoming meeting will be closely watched for signals about future interest rate policy.