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Today: 30-year fixed hit 6.85% (highest since June 2025), national inventory climbed to 1.62M units (highest in a decade), and core inflation held at 2.4% with an 87% probability the Fed hikes rates next week.
National existing home sales fell 2.0% in August to a 3.98M annualized rate, the first time below 4M since June 2025. The median price climbed to $429,100 (up 1.6% year-over-year), marking 38 consecutive months of appreciation. Source
For Richland County: if national inventory is at 4.9 months and prices are still climbing despite higher rates, watch your local DOM trends closely. Buyers have more negotiating room nationally, but Columbia's market could be tracking differently given USC enrollment cycles and Fort Jackson demand.
Mortgage rates jumped to 6.85% (30-year fixed), up from 6.79% the prior week and the highest level since June 2025. The 5/1 ARM rate fell to 5.82%, creating a 103-basis-point spread that's pushing more borrowers toward adjustable products. Source
Refi applications dropped 6% week-over-week and are down 25% year-over-year, hitting the slowest pace since May 2025. Purchase apps were flat (-0.2%), but remained 4% higher than the same week last year - the only positive data point. Source
Action item: Pre-approvals written at 6.5% three weeks ago are now stale. Reconnect with buyers to reset expectations and recalculate affordability at current rates.
August CPI came in at 3.4% year-over-year (unchanged from July), but core inflation ticked up 0.3% month-over-month. Shelter costs reaccelerated (+0.3% monthly after +0.1% in July), and the CME FedWatch tool now prices an 87% probability of a Fed rate hike at next week's meeting. Source
If the Fed hikes, expect mortgage rates to spike further in the short term, even though longer-term rates may stabilize if the market believes the Fed is serious about fighting inflation. This is bad news for fall buyer activity but could flush out more distressed inventory if sellers capitulate on price.
National housing starts are down in most regions, with the Northeast as the lone exception due to urban infill and multifamily projects. Source
For Columbia: check Richland County permit data to see if local builders are slowing activity. If new construction inventory is dropping, resale comps may have less competition in the next 6-12 months.
The 21st Century ROAD to Housing Act raised FHA multifamily loan limits and indexed them to inflation annually (first increase in 23 years), expanded the Public Welfare Investment cap from 15% to 20% (boosting LIHTC equity), and reformed the HOME Investment Partnerships Program to reduce environmental review burdens on 1-4 unit projects. Source
Full implementation may take until 2028 due to HUD rulemaking timelines and funding gaps, but multifamily developers should track guidance on the new loan limits and PWI cap. LIHTC projects in Columbia may see more national bank equity if the 20% cap attracts new capital. Source
LCOR (multifamily developer) acquired Taconic's Upper East Side life sciences site for $73M, signaling that developers are pivoting away from lab space and back toward residential as life sciences leasing volume collapsed 84% in Q1 2026. Source
Not directly relevant to Columbia, but watch for similar pivots locally if any mixed-use projects with office/lab components stall.
Zillow faces a shareholder lawsuit over its $100M Redfin multifamily rental syndication deal, alleging executives breached fiduciary duty and engaged in insider trading by selling $81M in stock before antitrust litigation became public. The FTC case settled in late August with no fines, but the derivative suit seeks governance changes and damages from individual executives. Source
Separately, a foreclosure case in D.C. was thrown out after a bank's attorney submitted an AI-generated brief with fabricated case citations. The judge struck the entire brief and suggested the appeals court may sanction the lawyer. Source
Compliance reminder: if you're using AI tools for contract drafting or legal research, verify every citation and fact. One bad brief can cost the client the case and expose you to malpractice claims.
FHFA Director Bill Pulte directed Fannie and Freddie to approve all lenders for VantageScore use and stated the FHFA is "studying using only a single credit report" without clarifying the model. MISMO added VantageScore, Guild, and FICO executives to its board as credit modernization accelerates. Source Source
Lenders: if you're still quoting credit score ranges based on FICO alone, update your disclosures and train LOs on VantageScore 4.0 overlays.