Mortgage Rates Hit Multi‑Month Lows

Mortgage Rates Hit Multi‑Month Lows

Mortgage rates just hit a major milestone. For the first time since 2022, the average 30‑year fixed rate dipped below 6%, landing at 6.01%, while 15‑year rates fell to 5.35%, according to Freddie Mac. This shift is already rippling through the housing market — and the Outer Banks is no exception.

Lower rates are boosting affordability, bringing more buyers back into the market, and opening the door for existing homeowners to refinance. Nationally, refinance applications have more than doubled year over year, and total mortgage applications jumped 14% in a single week. Even new‑home purchase applications rose 19% from December, signaling renewed momentum as we move deeper into 2026.

Why Rates Are Dropping — And Why It Matters for OBX Buyers

Economists point to softer inflation and improving labor data as key drivers behind the recent decline. The 10‑year Treasury yield — a major influence on mortgage pricing — fell to its lowest level since late 2025, helping push rates down.

For Outer Banks buyers, this shift is meaningful. Lower rates increase purchasing power, reduce monthly payments, and make second‑home or investment purchases more attainable. But there’s another side to the story: inventory remains tight.

• New construction is trailing last year’s pace
• Existing‑home sales remain near 30‑year lows
• Many homeowners are still locked into ultra‑low pandemic‑era rates

If the “lock‑in effect” continues, lower rates could spark stronger competition this spring — and potentially put upward pressure on prices in desirable OBX communities.

Buyer Behavior Is Shifting — And It’s Good News for Today’s Purchasers

The January 2026 REALTORS® Confidence Index shows early signs of renewed buyer activity, especially among first‑time buyers. Their market share climbed to 31%, up from 29% in December and 28% one year ago.

Even better: nationwide buyers are regaining negotiating power.

• Inspection waivers dropped to 12% (down from 18% last month)
• Appraisal waivers fell to 15% (down from 19% last month)
• Homes are sitting slightly longer, reducing pressure to rush or waive protections

For Outer Banks buyers — especially those purchasing from out of town — this shift provides a healthier, more balanced environment than the ultra‑competitive conditions of the past few years.

Market Expectations Strengthen Heading Into Spring

Confidence is rising on both sides of the transaction. Below are some national market statistics:

• 35% of agents expect buyer traffic to increase over the next three months
• Expectations for seller traffic also improved
• Only 16% of homes sold above list price
• Homes received an average of 2.2 offers, down from 2.6 a year ago
• Cash buyers remain steady at 27%
• Most contracts are still closing within a consistent 30-45‑day window

Inventory Remains Tight Across the OBX

Even with rates easing, the Outer Banks is still experiencing historically low inventory, especially in the most desirable price ranges.

• New listings remain well below pre‑pandemic levels
• Many homeowners are still locked into 3–4% mortgages, limiting resale activity
• New construction is steady but not enough to meet demand in areas like Corolla, Duck, Kill Devil Hills, and Nags Head

This tight supply continues to support pricing stability, even as days on market have increased slightly compared to the frenzy of 2021–2023.

Buyer Activity Picking Up as Rates Drop

Lower rates are already influencing buyer behavior on the Outer Banks:

• Showing activity has increased since early January
• Out‑of‑market buyers are re‑engaging after sitting out much of 2025
• Second‑home and investment buyers are returning as rental projections remain strong

Homes that are well‑priced and in good condition — especially oceanside and soundside properties — are seeing renewed interest.

Days on Market Increasing — But Still Healthy

Homes are taking a bit longer to sell compared to the peak pandemic years, giving buyers more breathing room.

• Average days on market have increased, offering buyers more time to evaluate properties
• Fewer buyers are waiving inspections or appraisals
• Negotiation opportunities have improved, especially for homes needing updates

This aligns with the national trend toward a more balanced market — but the OBX remains competitive due to limited supply.

Now is a great time to see listings firsthand and find your ideal home or rental property. Can’t make the trip down just yet? Stay up to date with the Outer Banks real estate market by signing up for a Listing Manager account or receiving Market Reports. These tools will keep you informed on market trends and help you refine your search.

For a personalized touch, share your search criteria, and I’ll create an automatic email search tailored to your preferences.

Want to Sell Your Outer Banks Property?

If you have a house to sell or know anyone that wants to sell now is the time. It does not cost you anything to find out what I can sell your property for with a Free Home Valuation. The spring selling season and busiest time of the year for sales on the Outer Banks is March-May.

Trust a Proven Realtor with Your Outer Banks Real Estate Needs

With over two decades of experience, Matt ranks in the top 7% of all Outer Banks Realtors for total sales volume and the number of houses sold since 2003. His expertise and dedication make the selling process smooth and successful.

Ready to take the next step? Contact Matt today and start your journey toward selling—or buying—your dream Outer Banks property.

A big part of buying Property on the Outer Banks is finding the right lender and getting pre-qualified.
Below are two local lenders that you can contact to get the mortgage process started.

Kelly Tolson-Arbor Home Loans
Mortgage Loan Originator, NMLS# 664230
Kill Devil Hills, NC 27948
Phone: (252) 364-3712
Email: ktolson@arborhl.com

Jamie Lavier-Towne Bank Mortgage
Senior Loan Officer-NMLS # 996395
Kitty Hawk, NC 27949
Office # 252-255-4561
Cell # 252-489-9317
Email Me