US February ISM Services PMI Soars to 56.1, Hitting a Three-and-a-Half-Year High, as Inflation Worries Resurface

MBA Purchase Index Snaps 4-Week Losing Streak! Surges 6.1% to Return to 158.9 as Lower Rates Ignite Spring Buying

According to the latest DataTrack data, for the week ending February 27, 2026, the US MBA Purchase Index was reported at 158.9, a sharp rebound of 6.1% from the previous week's 149.7. This figure not only ended the downward trend of four consecutive weeks since the end of January (falling all the way from 193.3 to 149.7) but also showed strong willingness for bargain hunting after the index fell below the 150 mark. Compared with the same period last year (144.5 at the end of February 2025), the index showed a year-on-year increase of 10%, indicating that the foundation of the housing market this year is more solid than last year. Observing detailed performance, although the index rose this week, there is still a gap from the swing high of 194.1 set in mid-January, reflecting that market volatility remains intense. The key to this rebound lies in the resonance between "interest rate sensitivity" and "seasonal factors." Search data shows that as the 30-year fixed mortgage rate tested the 6% psychological level in late February (with some sources indicating it touched a three-year low), it significantly improved the affordability for potential buyers. In addition, as the timeline enters March, early positioning for the traditional Spring Selling Season has also boosted mortgage application demand. Regarding this rebound, market institutions generally hold an optimistic attitude. According to forecasts from the MBA and NAR (National Association of Realtors), benefiting from an improved interest rate environment compared to 2025, US existing home sales are expected to see a significant rebound of approximately 14% in 2026. Analysts point out that although the Federal Reserve's rate cut path remains variable, if mortgage rates can stabilize within the 6% to 6.5% range, it will be sufficient to release deferred rigid demand suppressed by high interest rates for two years, with first-time homebuyers showing the strongest willingness to enter the market. Looking ahead, in the short term (1-2 months), it is necessary to observe whether the index can stabilize above 160; if spring buying momentum continues, the index has a chance to challenge the January highs. However, in the medium term (3-6 months), regional risks remain. Search results show that US housing market inventory presents an extreme polarization of "more in the South, less in the North"; rising inventory in the South and West (such as Texas and Florida) may suppress local home prices, while inventory shortages in the Northeast and Midwest may lead to fierce bidding, thereby affecting the sustained expansion of transaction volume. Furthermore, if inflation data unexpectedly rebounds, causing interest rates to rise back above 6.5%, it will be the biggest stumbling block to the housing market recovery. Online Search References: https://www.nar.realtor/newsroom/nar-forecast-home-sales-expected-to-jump-14-in-2026 https://www.situsamc.com/resources-insights/articles/mba-chief-economist-offers-2026-mortgage-market-forecast-msr-webinar