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Today: 30-year fixed mortgage rates edged up to 6.77%, national inventory fell 1.9% month-over-month to 1.54 million units, and price reductions hit 41% of active listings as sellers adjust to rate pressure.
Mortgage rates showed mixed movement this week. The 30-year fixed rate decreased slightly to 6.77% from 6.81% according to MBA data, while Mortgage News Daily reported rates ending the week marginally higher than Thursday. Mortgage Applications rebounded 3.6% as the rate dip provided temporary relief, though purchase applications remained 1% below year-ago levels.
For Richland County, these rate fluctuations mean continued pressure on buyer affordability. Every $100 increase in monthly housing costs equals roughly $18,000 in purchasing power lost at 6.5% rates with 10% down. Contact first-time buyer clients who've been waiting - this week's rate environment is as good as it's gotten in four weeks.
National existing home sales fell 1.7% month-over-month to a 4.06 million annual pace in July, but remained 0.7% higher year-over-year. NAR's report showed inventory at 1.54 million units (down 1.9% from June, down 0.6% year-over-year) representing 4.6 months of supply. The national median price hit $434,100, up 2.0% annually - the 37th consecutive month of year-over-year gains.
Locally, apply this data: if national inventory is tightening even with elevated rates, Columbia's student housing and Fort Jackson PCS cycles will keep our market competitive through fall. Price aggressively but accurately - overpriced listings are taking cuts later.
Foreclosure activity continues to generate headlines but remains below 2019 levels according to New York Fed data. HousingWire's analysis confirms foreclosure filings are not signaling a housing crash. The key metric: new listings data. During the 2005-2008 foreclosure crisis, new listings hit 250,000-400,000 per week for years. Current new listings: 67,301 last week, barely back to normal 80,000-100,000 range.
For Columbia investors, this means distressed inventory won't flood the market. Focus on traditional deal sources: expired listings, FSBOs, and properties sitting 60+ days. The foreclosure pipeline isn't your opportunity - yet.
Price reductions are climbing. Nationally, 41.1% of active listings have taken a price cut from original list price, up nearly 50 basis points for the week. The Mid-Atlantic region (which provides a reasonable comp for South Carolina markets) shows 40.1% of listings with reductions. Markets with higher inventory see higher cut rates - Delaware/Maryland Coastal at 47.6%.
Advise sellers: the first price is the best price. Properties sitting over 30 days face near-certain reduction pressure. For buyers, track DOM carefully - anything over 45 days in Richland County is a negotiation opportunity.
Multifamily investor sentiment turned negative. A Berkadia survey of 100+ investment principals found 61% hold a negative outlook for the second half of 2026 due to interest rate volatility, with 52% saying Q1-Q2 performance was worse than expected. The 10-Year Treasury sits at 4.7% (highest since 2023), while the 30-Year hit 5.2% (20-year high).
Despite pessimism, 82% of investors plan portfolio expansion and 83% expect improvement by late 2027. They're underwriting conservatively: 50% assume exit cap rate expansion of 25-50 basis points, and 75% project rent growth under 2.5% through late 2027.
For Columbia multifamily owners, this means: buyers exist but want discounts and stronger fundamentals. USC enrollment stability and Fort Jackson occupancy rates are your selling points. Price deals assuming cap rate expansion or you'll renegotiate later.
The Midwest is attracting capital over the Southeast. Berkadia's survey showed 58% of investors prefer the Midwest to the Southeast (52%) and Mid-Atlantic (46%). The Midwest shows 4.6% year-over-year rental growth assumptions versus 3.2% in the Northeast.
Industrial deals continue. PPM America provided $236 million for a 4.4-million-square-foot, 20-property Midwest industrial portfolio at 94% occupancy. The portfolio is within a day's drive of 50% of U.S. population - a logistics premium Columbia shares on the I-77/I-26 corridor. Market that advantage to industrial prospects.
Rental investor confidence hit a three-year low according to the RCN Capital/CJ Patrick Investor Sentiment Index. Only 26% of 300+ surveyed investors believe market conditions improved over the past year (down from 35% last quarter), while 45% said conditions worsened - the highest in survey history.
The culprits: high financing costs (cited by 50%+ of respondents), limited inventory, escalating renovation costs, and downward pressure on rental rates. More than 60% expect home prices to rise over the next six months, squeezing acquisition margins. Investor purchase activity fell 23% year-over-year in Q1 2026.
For Columbia property managers, this signals: landlords are holding, not selling. Focus on retention, not acquisition. Rental rate guidance should be conservative - don't promise 5% annual bumps in this environment.
Condo financing rules are tightening. NAR's webinar highlighted that condo associations must allocate 10% of annual budgets to replacement reserves for conventional/federal loans. That threshold rises to 15% effective January 4, 2027 for Fannie Mae and Freddie Mac loans unless fully funded via professional reserve study.
Columbia agents working Five Points or Vista condo inventory: verify HOA reserve levels now. Deals will die in underwriting if associations aren't prepared for the 15% threshold. Flag this to sellers early.
The NAR commission settlement continues to generate enforcement actions. Wyoming MLSs objected to plaintiffs' data-sharing notice, arguing they need specifics on what data is requested, time periods, formats, costs, and privacy protections before consenting. Judge Bough's order states non-response within seven days equals automatic consent for third-party data providers to share with plaintiffs.
For South Carolina MLSs and brokers, monitor this closely. If your MLS opted into the NAR settlement, similar data requests may be coming. Consult MLS counsel before any blanket consent.
The 21st Century ROAD to Housing Act includes significant land-use provisions. NAHB's breakdown covers three key sections:
Section 107: HUD will develop voluntary federal zoning best practices examining minimum lot sizes, parking requirements, density limits, discretionary approvals, impact fees, and missing middle housing obstacles. Home builders and developers will be included in stakeholder consultations. Published within three years.
Section 213 (Build Now Act): A CDBG pilot rewarding communities with above-median housing growth rates with additional funding, while reducing allocations by 10% for eligible communities below the median.
Section 209 (Accelerating Home Building Act): Grants for local governments to adopt pre-reviewed "pattern book" housing designs (ADUs, duplexes, triplexes, fourplexes, townhomes, cottage courts up to 25 units), creating faster approval for qualifying projects.
Columbia developers and builders: engage with local planning now. These federal frameworks will shape state enabling legislation and give you ammunition for zoning reform conversations at county level.
Consumer sentiment dropped 7.6% month-over-month and 12.4% year-over-year in August, driven by war-related inflation concerns. Expected business conditions sank 11% short-run and 17% long-run. Year-ahead inflation expectations ticked up from 4.2% to 4.3%, with only 8% of consumers expecting income growth to exceed inflation (down from 18% in December 2024).
Don't ignore sentiment - it affects showings. Frame listings around stability and fixed-rate mortgages as inflation hedges. Buyers who close now lock costs; renters face annual increases.