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Today: Mortgage rates eased to around 6.5% as Iran war diplomacy improves, NAR faces another antitrust dismissal, and Mississippi joins Alabama in overriding NAR buyer agreement mandates.
The 30-year fixed mortgage rate is hovering around 6.5%, down from last week's spike but still sharply elevated from February levels. Mortgage News Daily reports the improvement comes as U.S. officials signal diplomatic shifts regarding the Iran conflict, driving oil prices and bond yields lower. For Richland County agents, this creates a narrow window. Rates above 6.64% historically pressure purchase activity. We are close to that threshold. Reach out to clients who paused searches when rates hit 7% last week.
National inventory climbed 5.2% year over year, but Realtor.com data shows the pace is slowing. Homes spent 59 days on market, 5 days slower than last year. Median listing prices fell 1.9% nationally, marking 22 consecutive weeks of flat or negative price growth. The price-per-square-foot metric dropped 2.5%, confirming an actual price decline, not just a mix shift toward smaller homes. Columbia sellers pricing aggressively at pre-2022 levels are moving inventory. Those waiting for a return to peak pricing will sit.
HousingWire regional analysis shows demand holding across major metros despite rate pressure. Texas drove national volume with 8,223 new pending sales statewide. Price reductions remain at 33.8% of listings nationally, essentially flat year over year. Sellers are finding buyers without widespread discounting. In Richland County, tighter inventory and disciplined pricing mean transactions continue. Watch for softness if rates break 7% and hold.
Mortgage application volume dropped 10.5% last week, according to the Mortgage Bankers Association. Purchase applications fell 5%, though they remain 5% higher year over year. Refinance applications plunged 15%, breaking a weeks-long run of strength. The refinance share of activity slipped from 52.3% to 49.6%. The takeaway for Columbia agents: Buyers are pulling back as affordability constraints tighten. Prioritize pre-approved clients and expect more deal contingencies.
Student housing demand remains structurally strong, but the financing environment is shifting. Commercial Observer reports that public-private partnerships are accelerating student housing development nationwide. Last year, projects using these arrangements created nearly 16,000 modern student beds. Universities face a mismatch: Only about one-fifth of undergraduates at the top 175 schools can be housed on campus, while privately owned purpose-built student housing near campus runs 95% to 99% occupied.
Expectations have changed. Students prefer apartment-style or suite-style living (only 21% prefer traditional dorms), and more upper-division students want to stay on campus. USC and the Five Points market reflect this shift. Off-campus apartments offering individual leases, furnished units, and resort-style amenities are capturing demand. Investors should focus on product that competes on convenience and lifestyle, not just proximity.
The timeline matters. High school graduates peak in 2026, with a 13% decline expected by 2041. Universities will compete harder for enrollment, and housing quality becomes a strategic differentiator. Columbia landlords serving USC students should plan now for amenity upgrades and flexible lease structures that align with PCS cycles at Fort Jackson.
Foreclosure activity is climbing nationally. Commercial Observer covered a $149 million foreclosure suit against Miami Beach's Goodtime Hotel, where the borrower stopped making interest payments in 2024. The hotel struggled operationally despite celebrity backing. The signal for Columbia: Hospitality and commercial properties that underperformed during rate spikes are entering distressed phases. Watch for REO and short sale opportunities in mixed-use and multifamily assets.
Building permit activity varies widely by market. Twin Cities permits surged in March, according to Finance & Commerce, while Bosnia's Federation saw an 18% drop in February. Richland County agents should track local permit data. New construction supply directly affects resale inventory pressure. If permits accelerate here, expect downward pricing pressure on older inventory. If they stall, existing homes gain pricing power.
Price reductions and expired listings create sourcing opportunities. Redfin reports that buyers commonly overlook red flags like cracked walls (45%), strong odors (43%), and roofing issues (37%) during tours. Agents working with investor clients should flag these fixable issues on distressed listings. The most common manageable problems are plumbing leaks (48%), minor electrical fixes (42%), and drywall scuffs (34%). These properties can be acquired below market if sellers are motivated.
FSBO and expired listings remain fertile ground. National data shows homes are taking longer to sell, creating urgency for unrepresented sellers. Columbia agents should door-knock expired MLS listings and offer BPO (Broker Price Opinion) services to reset pricing expectations.
Commercial Observer reports that CRE veteran Jonathan Morris launched Renaissance Realty Trust, a private REIT targeting existing apartment buildings and office-to-residential conversions. The REIT uses an UPREIT (Umbrella Partnership Real Estate Investment Trust) structure, transferring appreciated real estate in exchange for limited partnership interests. Morris is targeting vintage apartment buildings that are well-located and 97% to 98% leased, where owners have depreciated the tax basis to zero. Selling for cash does not work for these owners. The UPREIT solves the problem.
For Columbia investors holding older multifamily with minimal tax basis, this structure offers liquidity without triggering capital gains. The REIT is starting in D.C. but expanding nationally, including markets like Florida and Texas. If you have clients sitting on fully depreciated rental portfolios in the Vista or Forest Acres, explore UPREIT conversations now.
M&T Bank deployed $137.5 million for a Philadelphia affordable housing project, combining a $62.1 million construction loan, $45.2 million Freddie Mac forward commitment under the 9% Low-Income Housing Tax Credit (LIHTC) program, and $30.2 million in tax credit equity. The capital stack shows that affordable housing deals are still closing despite rate pressure. Columbia developers targeting mixed-income projects should pursue LIHTC equity and Freddie Mac commitments. The financing is available if the development pencils.
Cap rates are under pressure. Office-to-residential conversions are gaining traction as vacant office buildings trade at low basis. Columbia has underutilized office stock downtown. Developers with experience in adaptive reuse should target these assets before institutional buyers move in.
Realtor.com research profiles three renter groups: Young renters (31.9% of all renter households), family renters, and long-term renters. Young renters are concentrating in midsize, affordable inland metros, not expensive coastal cities. Columbia ranks in the top 10 markets by young renter share at 39.5%. This is an affordability story. Young renters are being priced out of Los Angeles (16.3% doubled-up) and New York (13.8% doubled-up). In Columbia, the share of doubled-up young rental households averages 8.6%, and 38.6% of renter households are single-person households.
The unemployment rate in top young renter markets averages 3.6%, compared to 4.1% nationally. Columbia offers jobs and affordability. Landlords should target single-person households with studio and one-bedroom units. Rent growth will track with inventory, not rate volatility. Vacancy rates remain tight, and rent trends favor landlords.
Condo insurance is reshaping affordability. HousingWire reports that Fannie Mae and Freddie Mac adopted extensive changes to condo project approval requirements. They relaxed replacement cost coverage to accept cash value on roofs and raised allowable deductible levels. This lowers insurance costs for condo projects and owners, improving mortgage loan availability. However, they eliminated the option for limited reviews, requiring full budget reviews on every project. This increases costs for smaller lenders. For Columbia condo buyers, lower insurance costs improve affordability, but stricter review requirements may slow closings.
Landlord-tenant law changes and Section 8 updates should be monitored. Insurance costs remain elevated, and landlords should budget 2% to 4% of the home's value annually for repairs and maintenance, according to Redfin. Property management clients need reserves to avoid special assessments when major systems fail.
NAR faces another antitrust dismissal. HousingWire reports that a magistrate judge in Florida is recommending dismissal of the Zea antitrust lawsuit filed against NAR and several local Realtor associations and MLSs. The complaint, filed by Jorge Zea, who runs a flat-fee brokerage, claimed NAR and local MLSs refused to enforce rules prohibiting steering and filtering by commission. The judge called the complaint "deficiently pled" and recommended dismissal without prejudice, meaning Zea can refile. However, the judge admonished Zea for using fake legal arguments and AI-hallucinated case citations. The takeaway: NAR's legal position is strengthening, but discount brokerages will continue testing commission structures.
Mississippi joined Alabama in overriding NAR buyer agreement mandates. HousingWire reports that Mississippi Governor Tate Reeves signed Senate Bill 2713 into law, stating that buyer's agents are not required to obtain a signed buyer agency agreement prior to touring a property. Licensees must only have a brokerage agreement signed before listing a home or submitting an offer if they will be compensated. This directly conflicts with NAR's commission lawsuit settlement terms, which require buyer broker agreements before tours.
Alabama passed a similar law a year ago. Wyoming, West Virginia, and Oklahoma are considering comparable statutes. Wyoming's SF 0105 defines "customers" (no signed agreement) and "clients" (signed agreement). Customers can submit offers without representation. South Carolina has not moved on this yet, but Columbia agents should watch SCREC (South Carolina Real Estate Commission) for guidance. If South Carolina follows Mississippi and Alabama, the buyer agency agreement requirement becomes unenforceable. Adjust workflows accordingly.
A new 2023 National Electrical Code change affects kitchen island outlets. NAHB reports that Section 210.52(C) no longer permits receptacles on the vertical sides of kitchen islands and peninsulas to satisfy countertop outlet requirements. The change was driven by safety concerns: Children can pull cords and appliances down. Builders must now incorporate electrical access directly into the countertop surface. For Columbia new construction, expect higher costs for island power solutions. Remodelers should budget for countertop-integrated receptacle systems when upgrading kitchens.
NAHB's Blueprint to 100 initiative focuses on three areas: Membership model, bylaws, and strategic plan. NAHB Chairman Bill Owens stated the goal is to make the Federation more nimble, increase engagement at state and local levels, and be more representative of the homebuilding industry. For Columbia builders, this signals potential changes to how local HBAs (Home Builders Associations) operate and how national policy filters to the local level. Engage with your local HBA now to influence these changes.