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Today: 30-year fixed mortgage rates climbed to 7.12% as the Iran conflict pushed the 10-year yield toward 5%, while DSCR investor loans surged 130% year-over-year despite fraud concerns following the Baltimore scheme.
Mortgage rates ended last week at 7.12%, breaking above the 7% threshold that historically signals weakening housing demand. Rates were as low as 5.99% earlier this year but climbed as the Iran conflict drove the 10-year Treasury yield toward 5%. Housing market faces headwinds as mortgage rates move above 7%
What this means for Richland County: Expect buyer demand to soften in the coming weeks. Housing data tends to improve when rates fall below 6.64% and fade when rates push above 7%. If you have active listings, prepare sellers for longer DOM and possible price adjustments. For buyers on the fence, rates could climb further - markets are pricing in a Fed rate hike next week.
National inventory fell from 883,683 to 873,978 units last week (holiday-impacted), but year-over-year comps will support better inventory growth in coming weeks as last year's rate environment was more favorable. New listings saw typical seasonal decline, amplified by Labor Day timing.
DSCR (Debt Service Coverage Ratio) loan volume jumped 130% year-over-year through August 2026, now representing 35% of non-QM production, up from 22% in 2022. These investor loans - which qualify borrowers based strictly on a property's projected rental cash flow rather than W-2s or pay stubs - are currently pricing between 7.125% and 7.25%. DSCR loans are booming amid fragmented underwriting standards
Action items for Columbia investors: - DSCR loans are now a mainstream financing tool for small, local real estate investors - not just institutional players. If you're advising rental property buyers, this is a faster path than traditional bank investment property loans. - Lenders are asking more questions about underwriting and property valuations following the 2025 Baltimore fraud case (hundreds of homes purchased at inflated prices, over half defaulted). Expect tighter scrutiny on appraisals and rental income projections. - Pricing remains competitive despite fraud concerns. If you have investor clients struggling with conventional lending requirements, DSCR is worth exploring - but document rental comps carefully.