Sonoma County Mortgage & Housing Market Update – February 2026

A clear, plain-English update on Sonoma County mortgage rates and housing market trends, plus a spotlight on local REALTOR® Sarah Carlson with Compass.

Each week I share a calm, straightforward update on mortgage rates, the economy, and what I’m seeing here in the Sonoma County real estate market — along with a spotlight on a local professional who helps elevate our community.


If you're thinking about buying, selling, refinancing, or simply trying to understand today’s market, here’s what mattered this week.

📊 Weekly Market Snapshot

Labor Market
January’s Jobs Report showed 130,000 jobs added, with unemployment ticking down to 4.3%. While that headline appears strong, revisions and other hiring data suggest the labor market may be cooling beneath the surface.

Inflation
The Consumer Price Index slowed to 2.4% year over year, with core inflation at 2.5%. Inflation continues to move in a moderating direction — one of the key drivers influencing Sonoma County mortgage rates.

Housing
Existing home sales declined 8.4% in January, likely impacted by seasonal weather. On a positive note, affordability has improved to its strongest level since March 2022.

➡️ What this means locally: We’re in a stabilizing market — not overheated and not chaotic — which allows prepared buyers and sellers to move thoughtfully.


🏡 What I’m Seeing in Sonoma County Real Estate

In the transactions I’m currently managing across Sonoma County, I’m consistently seeing:

• Seller credits averaging around 2%
• Increased flexibility on closing costs
• More conversations around rate buydowns

Instead of dramatic price reductions, opportunity is being created through smart negotiation and thoughtful structuring.

That’s where strategy truly matters.


🌟 Featured Sonoma County REALTOR®

Sarah Carlson | Broker Associate | Compass

One of the goals of this weekly update is to highlight professionals who strengthen the Sonoma County real estate community.

This week, I’m proud to feature Sarah Carlson — a full-time REALTOR® and Broker Associate with Compass, and a lifelong Sonoma County resident with more than 27 years of experience.

Sarah’s real estate career began in 1997 after purchasing her first home — an experience that shaped her belief that real estate is not just a financial transaction, but a meaningful life moment.

She puts it simply:

“I help people buy and sell homes, but mostly I just help people.”

Clients consistently describe Sarah as knowledgeable, responsive, meticulous, and incredibly patient. She is known as a trusted advisor and skilled negotiator who puts her clients’ best interests first.

She serves buyers and sellers throughout:

Santa Rosa
Rincon Valley
Bennett Valley
Windsor
Healdsburg
Oakmont
Petaluma
Rohnert Park
Sonoma Valley
And the greater Sonoma County region

Whether guiding first-time buyers, preparing a luxury listing, assisting with relocation, or helping families navigate estate-property sales, she blends empathy with strategy to deliver a calm, confident experience from start to finish.


The Compass Advantage

Through Compass, Sarah offers a concierge-level experience supported by tools such as:

• Compass 3-Phased Marketing Strategy
• Compass Buyer Demand Program
• Compass Exclusives (Private & Pre-Market Opportunities)
• Compass One client platform
• Compass Concierge (covering upfront improvement costs to maximize value)

These resources, paired with her strategic guidance, give her clients a meaningful advantage in today’s evolving Sonoma County housing market.


Beyond Real Estate

Outside of real estate, Sarah values connection and balance. She enjoys hiking Sonoma County trails, early morning Pilates, exploring great restaurants, traveling, and spending time with family and friends.

With Sarah, it’s never just a transaction — it’s a partnership built on trust, service, and thoughtful guidance.


Connect With Sarah Carlson

Website: https://www.sarahcarlson.com
Facebook: https://www.facebook.com/SarahCarlsonRealEstate
Instagram: https://www.instagram.com/sarahcarlsonrealtor
Phone: 707-479-7516


Final Thoughts

The Sonoma County housing market continues to evolve, but informed buyers and sellers still have strong opportunities — especially when supported by experienced professionals who collaborate and communicate well.

If you ever have questions about mortgage rates, financing strategy, or timing, I’m always happy to talk through your options.


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* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.