Stocks, Bonds, Mortgage Rates, Inflation & Housing Market Trends

The week ending February 13, 2026, brought a shift in market sentiment as cooling inflation data, steady employment strength, and improving mortgage rates influenced both financial markets and the housing landscape. While volatility continues, many indicators suggest a more balanced environment for real estate activity heading into spring.

📈 Stock Market Overview

U.S. equity markets experienced a mixed week as investors reacted to earnings reports, job data, and inflation numbers. Major indexes moved lower earlier in the week before stabilizing as softer inflation eased concerns about prolonged high interest rates.

Cooling inflation boosted optimism that borrowing costs may trend downward later in 2026, helping sectors tied to housing and construction show renewed strength.

What this means:

• Market volatility remains, but investor confidence improved by the end of the week.

• Stronger equities often support consumer confidence, which historically encourages home buying activity.

💵 Bonds & Interest Rate Movement

Bond markets rallied during the week as inflation data came in cooler than expected. Lower inflation expectations typically drive Treasury yields down — and mortgage rates tend to follow bond yields closely.

Lower bond yields signal that investors believe inflation may continue to stabilize, which is generally supportive for real estate financing conditions.

Key takeaway:
When bonds strengthen, borrowing costs often improve — a positive sign for buyers and refinancers.

🏡 Mortgage Rates Update

Mortgage rates improved slightly this week, hovering in the high-5% to low-6% range nationally.

• Average 30-year mortgage rates are roughly 5.85%–6.09%, depending on lender and loan type.

• Some surveys even reported averages near 5.87%, showing a gradual downward trend.

• Lower rates have started improving affordability and increasing buyer interest.

What this means for your clients:

• Buyers may regain purchasing power compared to late 2025.

• Sellers could see more activity as financing becomes slightly easier.

📊 Inflation & Economic Signals

Recent inflation readings showed signs of cooling, helping stabilize markets and encouraging optimism across housing and financial sectors.

Lower inflation is critical because:

• It reduces pressure on the Federal Reserve to keep rates elevated.

• It supports lower bond yields and potentially lower mortgage rates.

This “soft-landing” narrative — where inflation slows without a major recession — is currently shaping investor expectations.

🏘️ Housing Market Conditions

The housing market remains stable but is still constrained by limited inventory and cautious sellers.

• Mortgage rates at multi-year lows have begun improving affordability.

• However, total housing supply remains below pre-pandemic levels, keeping competition present in desirable markets.

• Housing demand is showing early signs of recovery as financing improves.

For areas like Westlake Village, Thousand Oaks, Santa Monica, and surrounding LA communities, lifestyle-driven demand and limited luxury inventory continue to shape pricing trends.

🔑 How This Affects Buyers Right Now

Opportunities

• Improved rates mean slightly lower monthly payments.

• Less frenzy compared to peak markets allows more strategic negotiations.

• Buyers who act before rates drop further may face less competition.

Smart Buyer Strategies

• Get pre-approved now to lock today’s affordability.

• Consider negotiating closing credits while inventory grows slowly.

• Watch bond market trends — they often signal upcoming rate shifts.

🔑 How This Affects Sellers Right Now

Opportunities

• Stabilizing rates bring buyers back into the market.

• Low inventory continues to support pricing in many areas.

Smart Seller Strategies

• Price strategically — today’s buyers are more payment-sensitive.

• Invest in presentation, staging, and curb appeal to stand out.

• Be flexible with terms rather than price alone to attract offers.

📍 The Bottom Line

The economic story for February 2026 is one of cautious optimism. Cooling inflation and improving mortgage rates are beginning to rebalance the housing market after a slower 2025. While volatility remains, conditions are gradually shifting toward a more active spring market for both buyers and sellers.

📞 Call to Action

If you’re thinking about buying, selling, or investing in Westlake Village, Thousand Oaks, Santa Monica, or anywhere in Los Angeles County, now is the time to understand how these economic shifts impact your strategy.

Let’s create a personalized plan based on today’s market — not yesterday’s headlines.
Call or message me anytime — I’m here to guide you every step of the way.

— Tina Lucarelli
ListWithTina.com (310) 738-8089