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June 16, 2026
Today: Mortgage rates hit one-month lows at 6.56%, builder sentiment dropped to 35 for the 14th straight month below 40, and 2026 CMBS data shows multifamily borrowers now financing through their cap rates with negative leverage.
Mortgage rates fell to 6.56%, matching the lowest level in exactly one month after pricing in the Iran peace deal. This marks solid improvement in the context of recent weeks, though rates remain elevated compared to the broader 2025 range. For Columbia agents, this is the best financing window since late May. Contact buyers who paused searches in early June and revisit pre-approvals that expired. The rate drop may unlock marginal buyers in the $250K-$350K Richland County segment where affordability has been the primary constraint. Mortgage News Daily
Builder confidence fell two points to 35 in June, the 14th consecutive month below 40, a streak not seen since the 2011-2012 foreclosure crisis. The South region dropped two points to 33, the weakest of any region. Nationally, 35% of builders cut prices in June (up from 32% in May) with an average 6% reduction, and 62% used sales incentives. For Columbia buyers, this signals continued negotiating leverage with new construction. Visit communities in Blythewood, Chapin, and northeast Richland County where spec inventory is stacking up. Builders are motivated, price cuts are widening, and incentives (rate buydowns, closing cost credits) are standard. If your buyer can wait 90-120 days for delivery, new construction is competitive with resale. RISMedia
HUD Secretary Scott Turner emphasized regulatory reform as the primary barrier to housing supply, citing studies showing regulation adds $100,000 to the typical single-family home cost. Turner highlighted a "best practices" report for local governments aimed at streamlining permitting and eliminating duplicative fees. For Columbia, this matters in two ways: First, watch for Richland County and Lexington County adoption of any federal best-practice guidance, which could accelerate permitting timelines for clients planning builds or ADUs. Second, if federal deregulation gains traction, it strengthens the case for new construction over resale in submarkets where land is available but development has been slow due to permitting friction. RISMedia
2026 CMBS origination data shows the average multifamily cap rate now sits at 5.41% with a 5.60% weighted average coupon, creating negative leverage (minus 19 basis points). Multifamily borrowers are explicitly underwriting NOI (Net Operating Income, the annual net cash flow before debt service) growth or betting on lower refinancing rates to make deals pencil. In contrast, office loans carry 13.8% debt yields and 55.4% LTV (Loan to Value, the ratio of loan amount to property value), the most conservative underwriting of any sector, and only well-leased, low-leverage office is clearing the securitization market. For Columbia investors, this data confirms two realities: multifamily acquisitions require conviction on rent growth (not day-one cash flow), and office remains a credit risk sector where lenders are extremely selective. If you have multifamily clients considering Columbia acquisitions (student housing near USC, workforce housing in Lexington County), they need to model 3-5% annual rent growth to justify financing costs. Office plays are dead unless the asset is investment-grade with long-term leases to creditworthy tenants. Commercial Observer
National commercial construction firm ARCO Design/Build signed a 9,771-square-foot lease at 470 Park Avenue South in New York. While this is a Manhattan deal, it signals continued demand for commercial construction services, a sector relevant to Columbia's ongoing mixed-use and warehouse development. If you work with commercial landlords in the Vista or near Fort Jackson, consider reaching out to national design/build firms expanding in the Southeast. Construction firms follow work, and if they are leasing new space, they are scaling. Commercial Observer
National MI's Spring 2026 Economic Market Snapshot projects 30-year mortgage rates will average 6% or higher through 2026, with nearly half of buyers ages 45-59 putting less than 20% down. First-time buyer activity rose during February's rate dip but remains suppressed overall. For Columbia agents, this data reinforces two strategies: First, don't wait for rates in the 5s to advise clients to move. The 6% range is the new normal, and buyers who wait indefinitely will miss opportunities as inventory tightens seasonally. Second, the 45-59 age cohort is leveraging equity or betting on appreciation rather than waiting to accumulate larger down payments. If you represent move-up buyers in this demographic, emphasize cash-out refinance options (if they own free and clear or have substantial equity) or consider HELOC (Home Equity Line of Credit) strategies to avoid liquidating retirement accounts for down payments. Mortgage News Daily
eLEND launched a DSCR (Debt Service Coverage Ratio, a metric for investment property loans where the property's rental income must cover the mortgage payment) Investor Program, allowing borrowers to qualify based on rental property cash flow rather than traditional income documentation. This product supports both experienced and first-time investors for purchase and refinance transactions. For Columbia agents working with investor clients (especially those targeting USC student housing or Fort Jackson rental inventory), this is a financing tool worth understanding. DSCR loans bypass W-2 income requirements, making them ideal for self-employed investors or those acquiring multiple properties. Partner with a lender offering DSCR products and create a referral pipeline for clients who cannot qualify conventionally but own cash-flowing rentals. Mortgage News Daily