Is the housing market entering a new crisis, or are the headlines exaggerating the data? In this February 2026 episode of Let’s Talk Housing, Brennen Thomas and Steven Thomas of Reports On Housing break down rising demand, falling mortgage rates near 6 percent, underwater mortgages, and new construction incentives. They explain why certain markets like Texas and Florida are softer while much of the country remains stable with strong equity. Get the proper context behind negative equity, builder buy-downs, and what to expect heading into the spring housing market.Got questions? Drop them in the comments or email us at [email protected] for a chance to have them featured in a future episode!Time Stamps:00:00-Introduction02:31-Winter Market Thaw Explained03:19-Year Over Year Demand Rising04:30-Hottest Spring Market Ahead05:00-Mortgage Rates Drop to 6%06:44-Inflation and CPI Update08:32-Could Rates Fall Into the Fives09:06-January Sales Tank Headline10:47-Expected Market Time Explained11:35-Housing Market Flywheel Effect13:23-One Million Underwater Homeowners13:52-Negative Equity Explained16:55-Texas and Florida Weakness17:55-2026 Labor Market Outlook20:28-Federal Reserve Trend Analysis21:47-Dr Horton 3.99 Percent Buydown22:34-New Construction Inventory Surge24:15-Builder Strategy Explained25:35-Conclusion