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April 2, 2026
Today: 30-year fixed rates hit 6.57%, mortgage applications dropped 10.4%, and national affordability data shows slight improvements as wages start catching up to home prices in major markets.
Mortgage rates climbed to their highest point since August, with the 30-year fixed hitting 6.57%, up from 6.43% the prior week. Refinance applications fell 17% week over week, and purchase applications dropped 3%. For Columbia agents, this rate spike means buyer hesitation is likely through mid-April. FHA and VA applications are holding up better than conventional, suggesting first-time buyers and military (Fort Jackson) are less rate-sensitive right now. Watch for clients in pre-approval who locked 30 days ago, they may be reconsidering.
National affordability improved slightly in Q1, with major monthly home expenses consuming 30.3% of typical wages, down from 31.6% a year ago. Wages are now outpacing home price growth in 64% of counties analyzed, including major metros like Los Angeles, Chicago, and Houston. While Richland County wasn't specifically mentioned, this signals that wage growth is starting to close the affordability gap in many markets. If local wages are following national trends, buyer purchasing power may be stabilizing even as rates climb.
Mortgage rates were flat to slightly lower mid-week, offering a brief reprieve after the spike. Bond markets are trading with hope for a finite timeline on geopolitical conflicts, which helped moderate rate movement despite stronger-than-expected employment and retail sales data. For Columbia, this means rates could stabilize in the 6.5% to 6.7% range if war-related uncertainty eases. Don't expect dramatic drops, but the bleeding may slow.
No USC-specific news in today's feed, but national multifamily vacancy rates remain at a record high of 7.3%, and units are taking an average of 38 days to lease, five days longer than a year ago. This suggests student housing near USC could see longer lease-up times for fall 2026, especially if parents are feeling economic uncertainty. Off-campus landlords should consider early lease incentives (first month discounted, waived application fees) to lock in tenants before summer. Fort Jackson PCS cycles typically run May through September, so military housing demand should pick up in the next 60 days.
Homebuilder Ashton Woods is pursuing pace over margin, increasing incentives and community count to maintain sales volume despite choppy demand. The builder's average sales price fell to $353,000, down from $361,000 a year ago, driven by a shift toward entry-level homes. This signals that builders are betting on volume, not price appreciation. For Columbia agents, watch for new construction incentives, particularly buy-downs and closing cost credits. These deals may undercut existing home pricing in subdivisions like Blythewood and Lexington, so adjust comps accordingly.
National housing demand is holding, but pricing gaps are breaking deals. Regional data shows more listings being pulled and more contracts falling apart. In Nashville, more than one in four listings has come back to market after failing to close. Atlanta and Houston are seeing similar patterns. Financing strain, appraisal gaps, and pricing mismatches are the culprits. Columbia agents should expect pipeline risk to rise, especially for deals at the upper end where buyers are more sensitive to rate spikes. Over-communicate with clients about appraisal risk and have backup financing lined up.
The Columbia Board of Zoning Appeals meets today (April 2). No agenda details in the article, but this is where variances, special exceptions, and conditional uses get heard. If you have clients eyeing properties that need zoning relief (accessory dwelling units, lot splits, commercial conversions), monitor the agenda at columbiasconline.com for precedent decisions.
J.P. Morgan refinanced 625 Fulton Street in Brooklyn with a $765 million loan, replacing $555 million in construction debt on a 1,102-unit tower. The project is 30% affordable housing and features 54,000 square feet of retail. This signals that permanent debt for large multifamily is available at aggressive terms, even with rates elevated. For Columbia investors eyeing new apartment construction (Harbison, Sandhills), talk to your lenders about balance sheet loans now. Construction-to-perm financing is still flowing for stabilized assets.
3650 Capital provided $104 million in preferred equity for a 1,495-unit multifamily portfolio acquisition in Chicago. The deal carried $308 million of Fannie Mae financing, and the preferred equity sit behind the agency debt. Chicago's multifamily market is seeing the fastest rent growth in the U.S., with occupancy near 95%. For Columbia investors, this is a reminder that preferred equity is an option for large acquisitions where traditional debt maxes out. If you're assembling a portfolio deal (Lake Murray rentals, Fort Jackson townhomes), consider mezzanine lenders or preferred equity to close the gap.
MF1 Capital provided a $64 million construction takeout loan for a 99-unit Brooklyn development, and Mesa West Capital provided $81 million to refinance a 313-unit townhome complex outside Houston. Both deals are floating-rate loans, suggesting borrowers are betting on near-term rate drops or quick exits. For Columbia, if you're advising clients on investment property financing, floating-rate debt is cheaper upfront but carries refinance risk. Lock in fixed rates if the hold period is 5+ years.
National median rent increased 0.5% in March, the second consecutive monthly increase after six months of declines. The national median now sits at $1,363, down 1.7% year over year. Multifamily vacancy remains at a record high of 7.3%, and units are taking 38 days to lease, more than twice as long as mid-2021. For Columbia landlords, this means rent growth is returning but vacancy risk remains elevated. Price competitively for spring lease-ups, and consider concessions (one month free on 12-month lease) to accelerate absorption.
Portland is considering an $8.8 million bailout for landlords to pay down debt and allow rent reductions in income-restricted units. Home Forward, the city's housing authority, is seeing over half of tenants more than 30 days late on rent. The city's FAIR ordinance requires landlords to rent to tenants whose income is 2.5 times monthly rent, which has led to tenants moving into units they can't afford. Columbia landlords should note this as a cautionary tale for rent-to-income screening. Stick to 3x monthly rent as a minimum, and verify employment directly, not just income claims.
Landlords are using AI to settle disputes with tenants, but renters should still get lawyers. The article is light on specifics, but the implication is that property management platforms are automating lease enforcement and eviction notices. For Columbia property managers, this means tenants may be getting AI-generated notices that look professional but lack legal nuance. If you're facing a contested eviction or lease dispute, consult an attorney before relying on template language from your PM software.
Builders are responding to affordability challenges with buyer incentives and smaller homes. According to NAHB, 64% of builders offered sales incentives in 2025, and 37% cut prices. Median new home prices have declined 5% since 2022, and the median home size in 2025 was 2,155 square feet, essentially unchanged from 2024. Builders are expanding outdoor space (patios, porches, decks) and adding flexible interiors (drop zones, multipurpose rooms, EV charging). For Columbia agents, this means new construction is getting more competitive on price and features. Tour model homes quarterly to stay current on what buyers are seeing in Harbison, Blythewood, and Irmo subdivisions.
Manufactured housing is appreciating faster than site-built homes, with manufactured homes on owned land appreciating 70.1% from January 2019 to January 2026, compared to 58.6% for single-family site-built. Manufactured homes on leased land appreciated 51.6%, about 88% of the site-built rate. For Columbia, this signals an opportunity for investor clients targeting workforce housing. Lake Murray and Lexington County have several manufactured home communities that could offer strong returns if purchased as rental portfolios. Zoning restrictions remain the key barrier, but if SCREC or local jurisdictions ease rules, manufactured housing could unlock significant inventory.
Home staging is critical for competitive listings. Staged homes sell up to 73% faster (23-28 days vs. 60-90 days for vacant listings), and offers are typically 1-5% higher. For Columbia agents, this means investing in staging for listings priced above $300K is non-negotiable. At minimum, stage living room, primary bedroom, and kitchen. For vacant homes, full staging pays for itself in reduced days on market and higher offers. Budget $2,000 to $4,000 for a 2,000-square-foot home, and position it as a seller investment that returns 3x to 5x at close.