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Today: The Fed hiked benchmark rates 25 bps to 3.75-4% with another increase likely before year-end, national foreclosure starts jumped 23% YoY, and Fannie Mae's condo financing overhaul now requires full project reviews on every conventional loan.
Fed raises rates again, signals more to come. Chairman Warsh cited persistent inflation as the board voted unanimously to raise the benchmark 25 basis points to the 3.75-4% range, with another hike probable before December. For Richland County sellers: price reductions on listings sitting beyond 30 DOM should happen now, not after the next hike. Buyers under contract should lock immediately. Agents advising fence-sitters need to be direct: waiting for lower rates is not the 2026 strategy. (Commercial Observer)
Mortgage rates pressing toward 7%. Realtor.com's weekly outlook flags affordability as the top concern with 30-year fixed rates near 7%. Midlands listings priced above $350K will feel this most acutely. Builders offering rate buydowns have a window to capture buyers priced out of resale; agents should be pairing clients with lenders who can structure 2-1 buydowns competitively. (Realtor.com, Realtor.com/Housing Week Ahead)
South and Midwest metros earn top marks for affordability and building pace. Realtor.com's metro report cards grade markets on current affordability and construction trajectory. The South, including SC metros, is outperforming coastal markets where zoning and permitting drag on supply. Columbia's relatively permissive building environment and sub-$300K median position it well in this grading framework. Agents marketing to out-of-state relocators should use this data point. (Realtor.com)
Foreclosure activity surging nationally. ICE reported 38,600 foreclosure starts in July 2026, up 23% year over year. Active foreclosure inventory rose 43%, and completed sales increased 14%. Lenders are done extending; the "kick the can" era is ending. For Richland and Lexington County investors watching tax sales and REO: the pipeline is growing. Build relationships with local default servicers now. Properties entering foreclosure at today's higher rates often carry underwater borrowers who purchased or refinanced during 2020-2021, which means potential below-market acquisition opportunities as these work through the system over the next 6-12 months. (Commercial Observer, HousingWire)
Default servicing breakdowns create investor openings. Handoff failures between investors, servicers, and law firms are causing delays and write-offs in the foreclosure pipeline. Firms with strong documentation and milestone tracking will recover assets faster. Local investors who can close quickly on lender-controlled transactions have leverage; equity in many distressed deals has been "substantially impaired or completely wiped out," per NewPoint Real Estate Capital. (HousingWire)
Opportunity Zones permanently renewed with tighter targeting. Congress made the OZ program permanent, but Treasury narrowed eligibility: qualifying tracts must now hit 70% of area median income (down from 80%), and about 20% fewer communities nationally will qualify. Rural OZ investments get a 30% capital gains reduction. SC investors should watch for the state's updated zone designations. If Columbia-area tracts retain eligibility, this is a durable capital gains deferral tool for multifamily and mixed-use projects in areas like North Main, Eau Claire, or Lower Richland. Check with your tax advisor before the designation announcements. (Commercial Observer)
Rate hike widens gap between well-capitalized and overleveraged owners. The 25 bps increase pushes stressed rates higher for new originations and forces lenders to require stronger debt-service coverage. For Columbia commercial investors: underwrite conservatively, assume rates stay above 4% on the benchmark, and expect another tightening before year-end. Overleveraged owners facing maturities are increasingly willing to sell at a loss. That creates acquisition opportunities for buyers who can bring fresh equity. (Commercial Observer)
Fannie Mae condo financing overhaul now in effect. As of August 3, the limited review shortcut for established condo projects is gone. Every condo now requires a full review covering budget, reserves, delinquency rates, and financial health. Reserve minimums rise from 10% to 15% of annual assessment income starting January 2027. The 50% investor concentration cap has been removed for established projects (new projects still need 50% owner-occupant presales). Columbia agents listing condos should get HOA financials early and set buyer expectations for longer approval timelines (4-8 weeks vs. the old 2 weeks). Condo boards that are underfunded on reserves need to act now before the January deadline. (HousingWire)
Agent attrition continues nationally. California lost 10,500 licensees year over year (down 2.4%), and the pattern holds in most states. A rising-rate, lower-volume market pushes part-time and casual agents out. For Columbia agents committed full-time: the thinning competition is real. Fewer agents chasing the same listing appointments means more opportunity per active professional. (HousingWire)