What's New in Real Estate!

Mortgage Rates Drift Modestly Higher

For all practical purposes, Friday's mortgage rates were unchanged versus Thursday's, but if we're splitting hairs, the average lender rose 0.01% to 6.77% for a top tier 30yr fixed.  While many news outlets continue focusing on the mid-week announcement regarding Treasury's bond buyback program, today's bond market volatility was unrelated. Current levels are close to where they were before Wednesday's announcement and that makes sense to anyone who Wednesday's market reaction as 'overdone.'  The upcoming week offers much more economic data in addition to potentially relevant comments from Fed Chair Warsh at the Fed's annual Jackson Hole conference.

Source: Mortgage News Daily | 21 Aug 2026 | 6:35 pm

Housing Starts Drop in July as Permits Point to Stronger Future Activity

Residential construction pulled back in July as housing starts and completions declined from June levels, while building permits rebounded. The latest Census Bureau data suggests builders remained cautious about active construction, even as the increase in permits pointed to somewhat stronger activity ahead. Privately owned housing starts fell 12.4% to a seasonally adjusted annual rate of 1.239 million , down 13.5% from the July 2025 pace. Single-family starts declined 9.9% to 808k , while starts for buildings containing five units or more fell to 421k . Building permits reversed course as well, increasing 5.0% from June to an annual rate of 1.443 million , and were 3.1% above the July 2025 rate. Single-family authorizations rose 2.5% to 894k , while permits for buildings containing five units or more increased to 490k . The divergence between permits and starts highlights the uneven pace of residential construction. After June's strong rebound in starts, activity pulled back in July, particularly in the single-family sector. At the same time, the increase in permits suggests builders were still authorizing new projects despite the weaker pace of actual construction. Multi-family starts remain in an uptrend, but they tend to lag major changes in single family starts by roughly 6 months.

Source: Mortgage News Daily | 21 Aug 2026 | 6:21 pm

Pending Home Sales Slip 2.3% in July

Pending home sales declined again in July as elevated mortgage rates and record-high home prices continued to weigh on buyer demand. The National Association of REALTORS® (NAR) Pending Home Sales Index (PHSI), which tracks signed contracts on existing homes, fell 2.3% from June and was down 2.2% from a year earlier, reaching its lowest level since January 2026. The latest report points to continued affordability challenges for prospective buyers. Higher borrowing costs and elevated home prices are keeping many buyers on the sidelines, while homes are taking longer to sell and fewer buyers are bidding above asking prices compared with a year ago. “The highest mortgage rates of the year hit right in the middle of summer, and that’s pulling back contract signings,” said NAR Chief Economist Lawrence Yun. He noted that record-high home prices are also contributing to longer marketing times, though conditions vary considerably across local markets. Yun added that job gains could bring more buyers into the market if mortgage rates stabilize or decline, although the effects of stronger employment take time to show up in housing activity. Pending contracts are currently 30% below their 2019 level, while payroll employment is 5% above its pre-pandemic level, suggesting a significant amount of potential demand remains on the sidelines. Contract activity declined in all four major regions during July. The Northeast posted a 2.0% monthly decline, while the Midwest fell 0.7% . The South decreased 2.2% , and the West recorded the largest decline at 4.7% . Compared with a year earlier, pending sales increased 1.7% in the Midwest but declined 0.2% in the Northeast, 3.0% in the South and 7.1% in the West.

Source: Mortgage News Daily | 21 Aug 2026 | 6:14 pm

Builder Confidence Technically Higher But Still Sideways in The Big Picture

Builder sentiment improved slightly in August, but confidence in the market for newly built single-family homes remained subdued as elevated mortgage rates, rising construction costs and broader economic uncertainty continued to weigh on the industry. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) increased one point to 35 , marking the 16th consecutive month the index has remained below 40. This latest reading reflects all the familiar challenges facing builders, including affordability pressures, elevated material costs and weak demand for spec homes, with rising gas and diesel prices emerging as a new face among the usual suspects. Current sales conditions improved two points to 39 , while sales expectations over the next six months held steady at 43 . Traffic of prospective buyers also remained unchanged at 23 , indicating that buyer activity continues to lag despite the modest improvement in overall builder sentiment. “While builder sentiment edged higher in August, builders continue to contend with high construction costs and broader economic uncertainty,” said NAHB Chairman Bill Owens. Owens noted that rising gas and diesel prices are pushing up material costs, while spec home building remains weak. He also pointed to the Midwest as a bright spot, with new home sales in the region up more than 2% so far in 2026. NAHB Chief Economist Robert Dietz said the latest survey continues to show signs of weakness in the home building market. He noted that custom home builders continue to report stronger conditions than spec builders, while smaller markets and smaller builders are also outperforming their larger counterparts.

Source: Mortgage News Daily | 21 Aug 2026 | 6:07 pm

No Major Changes in Mortgage Demand

Mortgage application activity was little changed last week as higher mortgage rates continued to weigh on purchase demand. The Mortgage Bankers Association (MBA) reported a 0.4% decrease in total application volume on a seasonally adjusted basis for the week ending August 14. Purchase applications decreased 2% from the previous week on a seasonally adjusted basis and were 3% below the same week one year ago. MBA Deputy Chief Economist Joel Kan said affordability difficulties have reemerged as a reason for some homebuyers to delay purchase decisions, citing the impact of higher mortgage rates on monthly payments. Refinance activity provided a modest counterpoint, with the Refinance Index increasing 2% from the previous week. Despite the weekly gain, refinance applications remained 18% below year-ago levels. The average refinance loan size fell to $282,200 , the lowest level since June 2025, as borrowers with larger loan balances remain less likely to refinance at current rates. "Mortgage rates and applications changed little last week, with just a slight increase in refinances for conventional and VA loans, while FHA refinances were lower," said Joel Kan, MBA’s Vice President and Deputy Chief Economist. The refinance share of total mortgage activity increased to 41.9% from 40.7% the previous week, while the adjustable-rate mortgage (ARM) share decreased to 7.7% from 7.9%.

Source: Mortgage News Daily | 21 Aug 2026 | 5:58 pm

AI Production, Product Launch, Processing Tools; Webcasts; Lender M&A; LO Tips

LOs tell me that they are counseling potential borrowers. “If you’re in the market for a home, focus on the things you can control. Save for your down payment which can be less than 20 percent, but the more you can put down, the less you have to borrow and the lower your monthly payments. Consider your priorities. Can you live further from the city and save a little money? Do you need a fourth bedroom or will three do for now? Understand clearly your ‘wants’ and ‘needs’ and be ready to compromise. Shop around for your mortgage. Don’t just go to your primary bank or get a loan from the credit union your real estate agent recommends. Do the legwork to search for the best mortgage rate you can qualify for. Lower rates aren’t going to fix everything, but it never hurts to get one as low as possible.” (Today’s podcast can be found here. This week’s ‘casts are sponsored by JazzX, the first true end-to-end AI platform built for mortgage. From application to close, JazzX is a new operating model that helps you scale growth, boost productivity, and transform how your team performs. Today’s has an interview with NonQMVerifi’s Danny Flucke on how lenders can make faster, better-supported underwriting decisions without relying on hard-to-obtain CPA letters for non-Agency borrowers.) Lender and Broker Software, Products, and Services Affordability pressure doesn't disappear when the loan closes. It comes back later as repurchase risk. Your borrowers are stretched, leaving less room for errors in the file. Truework, a Checkr company, verifies income, employment, and assets before you close, replacing error-prone processes with fast, automated reports pulled directly from sources. Lenders see up to 50 percent cost savings on verifications, with faster turn times and higher accuracy. Learn more.

Source: Mortgage News Daily | 21 Aug 2026 | 3:52 pm

Summertime Data-Free Friday Mystery Box

Bonds were a hair stronger overnight and are now a hair weaker at 9:15am ET. They may flip back and forth a few more times before the close. Ultimately, data-free summertime Fridays are fairly random events. If no big players have big intentions, they can fizzle sideways. But due to lower participation, if big trades come through, they can have a bigger impact than normal. As long as yields remain in the prevailing consolidation pattern, nothing of high consequence is happening.

Source: Mortgage News Daily | 21 Aug 2026 | 1:29 pm

Tune Out The Noise

Tune Out The Noise Yesterday's Treasury buyback announcement and today's comments from Bessent make for good drama in financial news, but the actual market impact had run its course within minutes of the initial announcement and we haven't seen solid evidence that the market has continued to care. Rather, the ample evidence is that an overnight oil price spike pushed bond yields higher. Peaks and valleys aligned perfectly. Elevated corporate issuance lingers constantly in the background causing broad elevation in bonds, but not much of an intraday impulse (even after an afternoon announcement of a big Broadcom bond offering in the pipeline).  Econ Data / Events Continued Claims (Aug)/08 1799.0K vs 1790K f'cast, 1777K prev Jobless Claims (Aug)/15 206.0K vs 210K f'cast, 209K prev Philly Fed Business Index (Aug) 47.4 vs 25 f'cast, 41.4 prev Market Movement Recap 08:52 AM Weaker overnight. 10yr up 4.5bps at 4.691 and MBS down just over a quarter point.  10:52 AM MBS down 7 ticks (.22) and 10yr up 4.4bps at 4.69 03:07 PM MBS down 9 ticks (.28) and 10yr up 4.7bps at 4.693

Source: Mortgage News Daily | 20 Aug 2026 | 9:08 pm

Highest Mortgage Rates in Just Over a Week

While Freddie Mac's weekly mortgage rate survey may show rates moving slightly lower this week, today's rates are actually higher than they were at the same time last week (6.76% vs 6.69%). Financial news continued to focus on yesterday's announcement of Treasury buybacks after Secretary Bessent spoke on CNBC this morning, but today's bump in rates had more to do with fuel prices. Treasury yields serve as an almost perfect proxy for intraday rate movement with 10yr yields often seen as the most common at-a-glance benchmark for mortgage rate movement (i.e. they tend to move in the same direction by roughly similar amounts). 10yr yields and oil prices were at the lows of the day at 1am. Oil rose fairly quickly through 8am ET and Treasury yields followed. Both peaked at exactly the same time and then remained broadly sideways all day. This isn't as scandalous or interesting as pretending today's rising rates had something to do with market backlash over the Treasury announcement, but it's the more accurate way to make sense of the day-over-day movement.

Source: Mortgage News Daily | 20 Aug 2026 | 8:38 pm