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July 8, 2026
Today: Mortgage rates climbed past 6.75% on Iran tensions, seller credits hit record highs in buyer-favored markets, and AI property management tools are making rental portfolios more scalable than ever.
Mortgage rates pushed back above 6.75% as geopolitical tensions reignited inflation concerns. The 30-year conforming rate averaged 6.77% Tuesday, up 4 basis points week-over-week, with jumbo loans at 6.75% and FHA loans at 6.35%. The Fed's hawkish stance under Chair Kevin Warsh, combined with rising oil prices from renewed Iran conflicts, is keeping rates elevated. Total mortgage applications dropped 2.2% last week despite stable rates, with refinance volume down 4% and purchase applications down 1%. For Columbia agents: lock-in conversations just got more urgent. Buyers hesitating at 6.5% won't find relief at 6.8%. (HousingWire, Mortgage News Daily, CNBC)
National home sales forecast edges up modestly as affordability improves, but price growth is slowing. Realtor.com's midyear update projects 4.10 million existing home sales for 2026, up slightly from earlier estimates, with year-over-year growth improving in the second half. Home prices are expected to rise just 1.2% annually, slower than projected and below inflation. Rents are forecast to drop another 1.2%, making renting attractive in many markets. For Richland County: inventory improvements and moderate price growth create opportunity for first-time buyers and investors chasing yield. If local rents follow the national trend down, cap rates tighten further. (Realtor.com Research)
Housing starts tumbled in June as real disposable income turned negative. New home sales fell in May on affordability concerns, and U.S. housing starts slowed significantly, giving multifamily apartments room to recover as single-family construction pulls back. The multifamily sector is showing signs of stabilization after oversupply. For Columbia developers: this is the breather multifamily needed. Single-family starts cooling means less competition for buyers, but watch financing conditions before breaking ground on new projects. (Housing Data News, Yahoo Finance)
Foreclosures are rising nationally, with certain markets hit hardest. While the article doesn't specify South Carolina metros, the national trend is worth monitoring. For Columbia investors: foreclosure inventory creates deal flow, but rising foreclosures also signal distress. Contact title companies and track Richland County public records for REO and pre-foreclosure opportunities. (The Business Journals)
Student housing is the largest deal vertical so far in 2026, with Scion Group's $910 million acquisition leading the sector. Scion, the largest privately held student housing owner in the U.S. (190 communities, 118,000 beds), acquired a 12-property portfolio from Harrison Street in May, the largest student housing transaction this year. Scion also acquired Student Quarters' operating business in June, adding 13,000 beds. CEO Rob Bronstein cited strong fundamentals driven by millennial and Gen Z demand for purpose-built student housing with privacy and amenities. For Columbia agents: USC enrollment remains strong, and purpose-built student housing near campus (Five Points, Vista, Shandon) is institutional-grade. If you have off-campus multifamily clients, frame proximity to USC as a competitive advantage. Fort Jackson PCS cycles also drive rental demand in Northeast Richland County. (Commercial Observer)
Seller credits hit record spring highs as buyers gain leverage in supply-heavy markets. Nearly half of U.S. home sales in May included seller concessions, with Nashville (75.5%), Charlotte (71.4%), Atlanta (68.7%), Phoenix (65.6%), and Raleigh (64.1%) leading the trend. Nationwide, there are 46.5% more sellers than buyers, giving buyers negotiating power in 34 of the 49 largest metros. Seller credits reduce buyer upfront costs without changing the sale price, covering lender fees, title insurance, escrow, and prepaid expenses. A $10,000 seller credit on a $398,771 home drops buyer closing costs from $12,000 to $2,000. For Columbia agents: if inventory is stacking up in your market, propose seller credits before the listing sits. Concessions close deals faster than price cuts. (Redfin Blog)
Multifamily acquisitions and refinancing activity remain strong despite elevated rates. Nuveen Real Estate acquired a 126-unit Section 8 portfolio on Manhattan's Upper West Side for $75 million, while Affinius Capital provided $188 million to refinance a 498-unit New Jersey multifamily complex. Bravo Property Trust closed $68 million in construction financing for a 180-unit luxury waterfront project in Bayonne, New Jersey. Berkadia hired Cushman & Wakefield's Blake Okland as Chief Revenue Officer, signaling continued growth in multifamily capital markets. For Columbia investors: institutional capital is still flowing to multifamily. If you have stabilized assets, reach out to capital markets brokers now. Debt is available for quality sponsors, but underwriting is stricter. Section 8 properties with long-term contracts are trading at compressed cap rates. (Commercial Observer, Commercial Observer, Commercial Observer, Commercial Observer)
New homes are shrinking as buyers prioritize affordability over square footage. The average new home is now 2,175 square feet as of December 2025, down 125 square feet from the 2019 peak. Builders are adjusting to affordability pressures by offering smaller, more functional floor plans, especially in markets with high cost sensitivity. Buyers are prioritizing layout efficiency, quality finishes, and proximity to urban centers over raw square footage. For Columbia agents: if you represent buyers priced out of larger homes, smaller new construction with smart layouts is the play. Frame it as "right-sized," not "downsized." For builders: two- and three-bedroom units are outperforming studios and one-bedrooms. (RISMedia)
AI and automation are making property management more scalable than ever, unlocking recurring revenue for brokers. With transaction volume down to 4.1 million annual sales (below historic norms), brokers are adding property management to stabilize cash flow. AI virtual agents now handle renter inquiries 24/7, self-scheduling tools automate showings, and maintenance routing is fully automated. A two-person team doubled their portfolio from 80 to 160 units using AI tools, and 61% of renter conversations happen outside business hours. For Columbia brokers: if you're riding out the transaction slowdown, property management is the recurring revenue play. Partner with a PM software provider and offer it as a service to landlord clients. (HousingWire)
Response time is now the most consequential factor in leasing. A 30-minute delay in responding to a tour request drops renter engagement likelihood from 40% to 10%, according to Rently's 2026 Renter Touring Expectations Report. 68% of renters have lost interest in a property because scheduling a tour was too difficult, and 47% chose a less ideal rental simply because it was easier to tour. 42% of renters prefer self-guided tours as their first step, but 57% still want a person available for questions. For Columbia property managers: automate tour scheduling and respond instantly. If you're answering inquiries during business hours only, you're losing half your leads. (Rental Housing Journal)
Affordable housing owners face cash flow squeeze as budgets no longer match rents. Many Oregon affordable housing properties are underperforming due to insurance doubling, utility hikes, and rents falling below underwritten projections. LIHTC units set at 60% AMI (Area Median Income) are renting at $900 instead of the projected $1,300. Nonprofits are weighing sales as deferred developer fees and asset management fees go unpaid, pulling down their broader mission. For Columbia affordable housing investors: underwrite conservatively. If budgets assumed $1,300 rents and the market delivers $900, cash flow disappears fast. Watch for distressed sales from nonprofits unable to bridge the gap. (Rental Housing Journal)
Oregon multifamily owners considering smoke-free policies under new law should plan now. Oregon House Bill 4120, effective January 1, 2027, allows apartment owners to adopt smoke-free policies after 180 days' notice. While not required, the law provides a statewide framework for conversion. Owners should review leases, meet with legal counsel, develop resident communication plans, define the policy scope (cigarettes, vaping, marijuana, outdoor areas), and train staff before the law takes effect. For Columbia landlords: South Carolina has no similar law yet, but smoke-free policies reduce turnover costs, odor complaints, fire risk, and cleaning expenses. If you're considering it, start now. (Rental Housing Journal)
DOJ settled an antitrust case with a property management company over rental pricing algorithms. Details are sparse, but the settlement signals continued scrutiny of revenue management software and algorithmic pricing in multifamily. For Columbia property managers: if you use RealPage or similar rent optimization tools, ensure compliance with antitrust guidelines. The DOJ is watching this space closely. (Washington Times)
Labor market cools as construction industry faces headwinds. U.S. nonfarm payrolls rose just 57,000 in June, the smallest gain since February's decline. Construction unemployment jumped to 6.2% in June, up from 5.2% in May and 3.7% in April, the highest since July 2021. Residential construction shed 8,600 jobs in June and has lost a net 48,800 jobs over the past 12 months. For Columbia builders and contractors: labor availability is improving as the market softens, but it's a warning signal. If unemployment is rising this fast, demand is falling. Price competitively and watch cash flow. (NAHB Now)
Bottom line: Rates are climbing, buyers have leverage, and property management is the recurring revenue opportunity brokers need right now. Seller credits close deals faster than price cuts. AI tools make rental portfolios scalable. Underwrite affordable housing conservatively and respond to renter inquiries instantly. Student housing is institutional-grade, and multifamily capital is still flowing to quality sponsors. Watch foreclosure inventory for deal flow and monitor construction labor markets for demand signals.