30-year mortgage rate climbs to 6.66% this week
The average rate on the 30-year fixed-rate mortgage rose to 6.66% this week, signaling higher borrowing costs for home buyers.
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Housing Market
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Rates climb to three-week high, dampening mortgage demand
Mortgage rates rose to 6.78% for 30-year conforming loans—the highest in three weeks—driving total mortgage applications down 1% for the week; refinances fell 2% (17% YoY), and purchase applications slipped 0.3% (5% YoY), with FHA/VA activity notably weaker; a separate Mortgage News Daily read suggested rates cooled later in the week due to oil-price declines.
Surging New-Home Inventory Meets Slumping Prices and Slower Sales
U.S. inventory of new single-family homes rose to 495,000 in July—the fourth straight month of gains—while the median price written into contracts fell to $393,800 (lowest since 2021) and the three‑month average price to $404,400. July sales dropped 5.7% year over year to 55,000, with most activity in the South and West. Builders have cut prices and offered incentives and rate buydowns, compressing margins and weighing on earnings. The market sits on roughly 9.6 months of supply, with large inventories in the South (301k) and West (103k); under-construction inventory fell 10% year over year to 262k, while completed-for-sale rose to 114k. Overall, builders are expanding supply even as demand remains softer.
UK Millennials Face a Long Climb Onto the Housing Ladder
Millennials in the UK still have far lower odds of owning a home than previous generations; decades of house price growth outpacing incomes and a long-term housing shortfall driven by high construction costs, planning barriers, and labor shortages have kept deposits high and rents consuming a large share of income. While recent price growth has slowed and some lenders are offering larger loans with smaller deposits, meaningful relief requires years of higher housing supply and planning reforms.
US Housing Faces a Prolonged Slump as Rates Hover Above 6%
Capital Economics forecasts a prolonged US housing slowdown through 2028: mortgage rates staying above 6% for at least two more years, home prices flat in 2026 with a gradual rebound to about 2.5% in 2027 and 4% in 2028, and sales around 4.7 million by late 2026—the slowest pace since 2011.
Pending Home Sales Sink Across Regions as West Declares New Low
U.S. pending home sales declined 2.3% in July to the second-lowest on record, with the West hitting a new record low and the South and Northeast also down, as mortgage rates sit around 6.4%–6.7% and supply remains elevated. The market remains embedded in a multi-year lull since the 2020–22 price boom, and high contract cancellations suggest weak closings ahead.
HD rides small-project demand to quarterly beat as housing slowdown persists
Home Depot reported a stronger-than-expected Q2 with revenue of $47.86B and 1.7% comparable-store growth driven by demand for smaller projects; US comps rose 1.3%, transactions declined 1% but average ticket rose to about $92.50. The company kept its 2026 outlook of 2.5%–4.5% sales growth and flat-to-up 2% comps, aided by tariff refunds and a national express-delivery launch. Yet the housing market remains weak due to higher mortgage rates and financing costs, weighing on bigger-ticket projects and overall demand.
AI windfalls turbocharge San Francisco housing market
AI wealth is fueling a San Francisco housing frenzy, with the median home price near $1.7 million and sales often exceeding asking prices by millions as new AI millionaires bid alongside tech workers. Rentals are rising, inventory is tight, and cash deals are more common in the Bay Area. The trend is helped by a rebound in SF population after the pandemic and could accelerate further if AI IPOs (OpenAI/Anthropic) unleash windfalls, potentially even allowing sellers to accept stock as payment.
Housing-investor sentiment hits a three-year low as rates and costs surge
Investor sentiment in the single-family housing market has dropped to an all-time low, with 45% saying conditions have worsened and only 26% saying they’re better. Financial headwinds—higher mortgage rates, rising insurance and renovation costs—and Iran-related geopolitical tensions are driving pessimism, while housing purchases fell in Q1 2026 and about one-third of investors plan no acquisitions this year. More than half expect prices to rise in the next six months, which could raise acquisition costs even as property values may increase. The shift is most pronounced among small- to mid-sized investors, with large institutions facing different constraints under new housing legislation.
July 2026 housing market tilts toward sellers despite buyer drought
Redfin’s July 2026 snapshot shows a buyer drought and a seller-heavy national picture: about 967,000 active US buyers—the lowest since Redfin began tracking—roughly 34% fewer buyers than sellers, with mortgage rates at a year-high that keep monthly payments uncomfortable. Nationwide, sellers outnumbered buyers by about 51.3%, though most metros (39 of 49) were still ranked as buyer’s markets. Nassau County, NY led as the strongest seller’s market, while Texas Sun Belt metros (Houston, San Antonio, Austin) posted 100%+-plus seller advantages as new homebuilding comes online. In short, affordability pressures and rising rates are cooling demand, making many markets tougher for buyers and, in some areas, more favorable to sellers.
Buyers Grab Leverage as U.S. Homebuying Drops to a July Record Low
Redfin's July housing report shows a record gap: about 51% more sellers than buyers nationwide (966,752 buyers vs 1,462,921 sellers), with 39 of 49 metros in buyer's markets; Miami, Nashville and several Texas metros lead, as high mortgage rates curb demand and give remaining buyers more negotiating power, suggesting a Labor Day window could be favorable for deals.
Manhattan and Brooklyn Rents Reach All-Time Highs as NYC Market Tightens
New data show Manhattan’s median rent rose to $5,000 in July (6.4% YoY) and Brooklyn’s to $4,500 (17% YoY), marking new records as mortgage-rate pressures keep would-be buyers renting. The 2025 FARE Act may be shrinking inventory by removing broker commissions, and landlords may hold units to dodge fees; only 6,000 Manhattan leases and 3,000 Brooklyn leases were signed in July, suggesting rents could keep rising through the fall.
Economist flags 2008-style crack in US home prices
An economist warns the US housing market is showing a 2008-style crack as falling annual home sales—now below 2008 levels—occur amid higher mortgage rates and a lock-in effect that keeps listings scarce. While July prices rose 2% year over year, tight supply and weak demand could push prices lower (roughly 2%), potentially dampening the wealth effect and signaling broader economic weakness ahead.
Cracking housing prices spark 2008 echoes, warns veteran economist
Veteran economist David Rosenberg says the US housing market is flashing a crisis-era warning: existing-home sales have slowed to levels near those before the 2008 crash, inventories are rising and prices are cracking, with a possible 2% drop that could sap the wealth effect and curb consumer spending even as median prices stay high.
Peabody, MA Tops Realtor.com's 2026 Hottest ZIP Codes List
Realtor.com named Peabody, Massachusetts the nation's hottest ZIP code for 2026, driven by strong buyer demand and rapid sales. Median listing price was about $667,000 in June, over $230k above the national norm but roughly 20% below the Boston metro average, with homes typically on the market for about 20 days and selling for slightly over asking. Experts cite downtown vitality, highway access, and comparatively low taxes as key factors; Westfield, MA ranks fifth, and New Haven, CT is the other New England entry in the top 10, underscoring ongoing demand despite affordability challenges in the region.