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June 6, 2026
Today: 30-year fixed mortgage jumped to 6.57% after strong jobs data crushed Fed rate cut expectations, national home prices fell 2.4% year-over-year (steepest decline since 2017), and HUD is reviewing FHA minimum property requirements that may reduce repair burdens for local sellers.
Mortgage rates jumped after Friday's jobs report showed 172,000 jobs added in May, crushing the 85,000 forecast and forcing bonds to reprice as the labor market stabilizes rather than weakening. The 30-year fixed hit 6.57%, down slightly from last week's 6.65%, but the drop was not enough to pull buyers back in. Purchase applications fell 3% week-over-week even as rates eased. The takeaway: rate relief needs to be substantial to move demand, and Friday's strong jobs data removed any near-term argument for Fed cuts. Adjust pricing expectations for longer inventory cycles if rates hold above 6.5%.
National median asking prices fell 2.4% year-over-year in May, the steepest annual decline in Realtor.com data going back to 2017. Homes under contract rose for the sixth straight month, signaling that sellers are pricing to move inventory rather than testing the market. Locally, this means Richland County sellers who price at or slightly below recent comps will see faster absorption than those anchored to 2024 valuations. Active inventory is up 1.8% year-over-year nationally, and time on market remains flat. Contact buyers who walked last quarter, rates are still historically elevated but inventory is loosening.
New home sales fell in April on affordability concerns, continuing a trend of buyer pullback in the higher-rate environment. Buyers remain selective, particularly on new construction where builder concessions (rate buydowns, closing cost credits) are table stakes in the Columbia market. If working with new construction clients in subdivisions near Blythewood or Lexington, verify builder incentives before showing, buyers expect them and will use them as negotiating leverage.
The May jobs report revealed real wages are still negative, with average hourly earnings at 3.4% year-over-year against expected CPI around 4.2% next week. Housing demand has stayed resilient so far this spring, but inflation eroding purchasing power is a headwind. For buyers who financed at 7%+ in 2024-2025, watch for refi opportunity if rates drop below 6% on future Fed dovish signals.
HUD is seeking public feedback through June 29 on whether FHA minimum property requirements should be updated to reduce repair burdens and delays. Current MPRs often require repairs before closing that GSE loans do not, leading sellers to reject FHA offers. If the agency modernizes standards to align with Fannie/Freddie, local FHA transactions (strong in Columbia's sub-$250K market) will see fewer appraisal-related delays and less seller resistance. Submit comments if you have clients impacted by FHA repair requirement friction. This could meaningfully expand buyer pool for starter homes in Richland County if changes are adopted.
Akron, Ohio is eliminating minimum lot size rules to allow infill development on hundreds of vacant lots. While not a Columbia story, the zoning playbook is relevant: legacy industrial cities are removing arbitrary barriers to naturally affordable housing in closer-in neighborhoods. Columbia has similar opportunities in older neighborhoods near downtown and USC where lot sizes and zoning could be relaxed to spur townhome and small multifamily infill. If working with investor clients targeting urban redevelopment, monitor City of Columbia zoning reform discussions for similar loosening.
JLL Real Estate Capital closed $70 million Freddie Mac refinancing for a 148-unit mixed-income multifamily property in Manhattan's West Village, leveraging a 2.6% vacancy rate and zero large-scale development in the pipeline. The deal structure, Freddie Optigo lending with securitization, is accessible for Columbia multifamily owners looking to refi stabilized assets near USC or downtown. Supply-constrained submarkets (Five Points, Vista) with low vacancy justify aggressive refinancing terms. Contact multifamily owners who purchased 2019-2021, refi opportunity exists if they locked in rents above pre-COVID levels.
Dwight Capital originated $66 million HUD 221(d)(4) construction loan for a 312-unit luxury multifamily project in Abilene, Texas, a market with 2.3% Class A vacancy and proximity to Dyess Air Force Base. Columbia's Fort Jackson base creates similar demand dynamics for nearby rental housing. Developers targeting the Northeast Columbia/Fort Jackson corridor should explore HUD 221(d)(4) for ground-up multifamily; recent precedent shows lenders are active in military-adjacent markets with tight vacancy.
Full-service property management is expanding nationally as landlords offload operations, according to property management expert Jennifer Oliver in a new PR Newswire feature. In Columbia's rental market, where USC student housing turnover is constant and military PCS cycles at Fort Jackson create seasonal vacancy, offering or partnering with full-service PM is a competitive advantage. If you manage investor portfolios, audit your service stack: tenant screening, maintenance coordination, lease enforcement, and rent collection should be turnkey or you risk losing accounts to dedicated PM firms.
Rep. Nicole Malliotakis (R-NY) introduced the Nest Egg Protection Act (H.R. 9064) to raise the capital gains exclusion to $1 million for homeowners 65+ who have owned their primary residence 25+ years. Current law allows $250K individual/$500K joint exclusion, unchanged since 1997. In Columbia's appreciating neighborhoods (Forest Acres, Shandon, Rosewood), longtime senior owners sitting on significant equity may be delaying downsizing due to tax exposure. If this bill advances, expect inventory unlock as seniors right-size without tax penalty. Track legislative progress and prepare outreach to 65+ homeowners in high-appreciation ZIP codes.
Zillow's legal battle with MRED over listing feed access continues, with a federal judge extending a temporary restraining order and scheduling a preliminary injunction hearing in July. Separately, a June 8 deadline looms in Zillow's showdown with Realtracs. MLS feed stability is table stakes for portal visibility. Columbia listings flow through CCAR MLS, which has not restricted Zillow access, but monitor national MLS-portal disputes. If feeds are cut, syndication strategies shift to direct relationships with Realtor.com, Redfin, and others.
Mortgage Bankers Association and trade groups are pushing FHA to modernize MPRs and align with GSE standards to reduce appraisal friction and expand access to qualified appraisers. MBA noted that FHA transactions experience higher rates of repair requirements and reinspections than Fannie/Freddie loans. If adopted, this could reduce FHA stigma among Columbia sellers in the sub-$250K range and improve offer acceptance rates for first-time buyers using FHA financing.
Sources: Mortgage News Daily (rates/jobs/apps), Realtor.com Research (May housing report), HousingWire (FHA MPR/Akron zoning/Boston demand), Commercial Observer (JLL/Dwight Capital), NAHB Now (fall prevention training), Redfin Blog (selling features)