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Today: National foreclosure rates are climbing but South Carolina remains below the top 10, mortgage rates continue hovering above 7%, and AI tools are reshaping transaction workflows while the Senate's housing bill targets manufactured home expansion.
Mortgage rates remain above 7% amid ongoing geopolitical tensions. Residential rates shot up 60 basis points since the Iran conflict started a month ago, with cancellation rates on February contracts rising to 13.7% in March compared to 12.8% in the same period last year. For Columbia agents, this means tighter buyer qualification. Review pre-approvals on active listings older than 30 days and expect more renegotiations as buyers adjust to higher monthly payments. Commercial Observer
National median single-family home prices sit around $400,000 with a housing shortage of 4 million homes. Richland County median pricing remains below the national figure, but inventory constraints are similar. The 30-year rate stubbornly staying above 6% (likely 7%+ locally) continues to suppress turnover. Watch for sellers who bought in 2020-2021 at sub-3% rates and are now facing mobility decisions. CNBC Real Estate
The Senate passed the 21st Century ROAD to Housing Act with 89-10 bipartisan support. The bill includes major manufactured housing reforms: removable chassis allowed, higher federal loan limits, relaxed zoning regulations. This matters for Columbia's affordability crisis. Manufactured homes could offer sub-$200K homeownership options if Richland County updates zoning codes to allow placement beyond traditional mobile home parks. Watch for local zoning changes in Q2 2026 and scout land parcels that could accommodate factory-built developments. Clayton Homes (Berkshire Hathaway) and Cavco Industries are retooling production now. CNBC Real Estate
National foreclosure rates are hitting hardest in 10 specific states. South Carolina is not in the top 10, but delinquency rates on office CMBS loans hit an all-time high in January nationwide with $100 billion in loans maturing this year. Columbia's office market exposure is smaller than major metros, but watch for distressed commercial properties downtown and in the Harbison area as office loans reset at higher rates. These properties can't refinance in the current rate environment even if cash flowing. Scout for CMBS maturity schedules on Columbia office buildings and position investor clients for potential acquisition opportunities at discounts. Quartz, Commercial Observer
The Trump administration's executive order targeting institutional investor homebuying creates uncertainty for build-to-rent developments. This segment is relatively small nationally but affects new construction financing. Columbia's suburban build-to-rent projects (if any in Lexington County or Blythewood) could face financing headwinds. The Senate bill debate in the House will determine if this restriction stays. Track local permit filings for build-to-rent projects and advise developer clients to pause until House resolution. CNBC Real Estate
David Simon, CEO of Simon Property Group, died March 22 at age 64. SPG owns premium mall assets nationwide with 96.4% occupancy and $68 billion market cap. While Columbia doesn't have a Simon property, the succession to son Eli Simon signals continued stability for retail REIT anchor tenants. Columbiana Centre and other regional malls indirectly benefit from SPG's counter-cyclical buying strategy proving retail isn't dead. Watch for SPG's 2026 acquisition activity and potential interest in secondary markets like Columbia as institutional capital seeks stable retail assets. Commercial Observer
Office CMBS distress is accelerating. Morningstar DBRS estimates $100 billion in office loans maturing this year. Single-asset, single-borrower Class A office properties still have strong CMBS investor demand, but loans can't refinance at current valuations. For Columbia's downtown office market (Main Street corridor, Vista), expect capitulation sales in 2026 as borrowers can't bridge valuation gaps. Position institutional buyers for office-to-residential conversion opportunities, especially properties near USC campus where student housing demand is strong. Commercial Observer
AI is accelerating real estate transaction workflows but cannot replace professional judgment. The American Land Title Association study found 80% of purchase transactions require reviewing 11+ documents, with 20% requiring 50+ records. Nearly 60% of transactions need clearing 3-5 title issues before closing (unreleased mortgages, unpaid tax liens, legal description errors, chain of title gaps). For Columbia agents, this reinforces the value of local title professionals who know Richland County Register of Deeds quirks. Fraud prevention now consumes 11+ hours per month for title companies, with wire fraud and identity theft risks evolving alongside technology. Remind clients that title insurance premiums fund pre-closing curative work (70 cents per dollar), not just post-closing claims protection. HousingWire
Realtor.com launched a ChatGPT app integration for home search planning, joining Zillow and Redfin. The app captures the "pre-search phase" where buyers calculate affordability, compare neighborhoods by commute times, and explore school zones. MLS data protections are in place (no training ChatGPT models, limited preview data, attribution required). Columbia agents should expect more informed buyer leads from this funnel but also more comparison shopping across portals. First-time homebuyers using these tools will arrive with budget clarity but need local expertise on USC proximity, Fort Jackson commute, and Lake Murray access. Position yourself as the Columbia market expert who translates AI-generated research into actionable Columbia-specific advice. HousingWire
Reverse mortgage broker-lender relationships are evolving with new pipeline protection agreements from lenders like Mutual of Omaha and Longbridge Financial. However, the industry remains dependent on refinances rather than new affluent borrowers. For Columbia's aging homeowner base (particularly in established neighborhoods like Forest Acres, Shandon, and Lake Murray suburbs), reverse mortgages offer liquidity without monthly payments. Target house-rich, cash-poor clients ($500K+ home equity, limited liquid assets) and affluent retirees using reverse mortgages for tax-strategic interest deductions. Proprietary reverse products (non-HECM) are growing for homes above conforming limits. HousingWire
eNotarization technology is expanding beyond closings to handle powers of attorney, trust certifications, corporate resolutions, and affidavits that previously required in-person notarization. These ad hoc documents create delays in loan processing when handled via paper. Columbia agents working with out-of-state buyers or military families (Fort Jackson PCS transfers) should leverage remote online notarization (RON) for pre-closing documents to maintain deal velocity. South Carolina authorized permanent RON in 2020, so no legal barriers exist. Recommend lenders and title companies offering full eNotary workflows to avoid rescanning and shipping delays. HousingWire