Small mortgage rate cut could add 1.4 million potential buyers, NAHB says
Feb 24th 2026
NAHB estimates a 25 basis-point drop from 6.25% to 6.00% would allow about 1.42 million more households to afford a median-priced new home priced at $413,595.
- Mortgage rates fell from a 2023 peak near 7.6% to about 6.01% on February 19, 2026, but remain above 2010s norms of 4% to 5%.
- At the start of 2026, with a 30-year fixed rate of 6.25%, roughly 31.5 million households could afford a median-priced new home at $413,595.
- Under front-end underwriting standards, qualifying income at a 6.25% rate is $124,336.
- A 25 basis-point cut to 6.00% would lower the qualifying threshold and add about 1.42 million households to the pool of those who can afford a median-priced new home.
- About 79.8 million households earn less than $105,880 and another 14 million earn between $105,881 and $132,350, concentrating many households near key affordability thresholds.
- An equal 25 basis-point cut at higher rates, for example from 7.75% to 7.50%, would add only about 1 million households because fewer buyers sit near the qualification margin.