Over Labor Day weekend the markets were able to ponder the latest employment report. The job sector has been up and down for the past eighteen months and after a dismal report in July, there was hope for an upturn with regard to the August numbers. As it turns out, in August the economy added 162,000 jobs.  In addition, the past two reports were revised upward by 55,000 jobs resulting in a net gain of 217,000 for the month. The headline unemployment rate remained at 4.1%.  Overall, these numbers were seen as a definite rebound from the lackluster July report.

On the inflation side, wage growth increased by 0.3% from July and 3.1% year-over-year.  These numbers are vitally important because it is imperative that the American consumer’s wage growth meets or exceeds the growth in prices that consumers are experiencing.  We are not only talking about everyday gas and other commodity prices, but long-term costs such as housing.  Strong wage growth helps make mortgage and rent payments more affordable in the long run. Of course, strong wage growth can also fuel inflation, which is something that the Federal Reserve is watching very closely.

Speaking of the Fed, they are meeting next week for the first time since their July get together.  The minutes of their July meeting were released in mid-August and there was certainly some inclination towards raising their benchmark interest rates. The August jobs report will likely add to this sentiment.  Despite the concern regarding increasing inflation, we had a fairly benign consumer price index report released last month.  The CPI index for August is due to be released this Friday and will serve as another important reading for the Fed to chew on when they meet next week. Another bit of good inflation news would be a good bit of ammunition to hold the hawks off at this meeting.

Weekly Interest Rate Overview

The Markets. Mortgage rates continued higher in the past week as the conflict in the Middle East flared up and expectations for continued inflation stayed relatively high. According to the Freddie Mac weekly survey, 30-year fixed rates rose to 6.71% last week from 6.66% the previous week. In addition, 15-year rates increased to 6.04%. A year ago, 30-year fixed rates averaged 6.50%, 0.21% lower than today. Attributed to Freddie Mac: The 30-year fixed-rate mortgage averaged 6.71% this week. Purchase demand has remained relatively stable indicating steady interest from buyers adapting to evolving market conditions.  Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Real Estate News

Despite lagging sales, current homeowners remain in a strong position, continuing to benefit from the home price appreciation of recent years. Earlier this spring, NAR’s data showed that price growth has helped the typical homeowner accumulate about $128,000 in housing wealth over the past six years alone. Housing inventories remain limited in many markets, allowing sellers to retain an advantage in pricing their home while buyers contend with fewer choices this summer. The number of homes for sale in July fell 1.9% compared to June, and inventories are down 0.6% from July 2025’s already low levels. Facing little competition, owners are selling relatively quickly: Nationally, the median time on market in July was 29 days, according to NAR’s latest data. Entering the housing market remains tough for first-time buyers. Without equity from a previous home sale toward a purchase, many are having a hard time competing as higher prices and mortgage rates stretch affordability. First-time buyers comprised 29% of existing home sales in July, down from 33% in June but still up from 28% a year ago, according to the July 2026 REALTORS® Confidence Index Survey. Meanwhile, investors, second-home buyers and repeat buyers who can leverage cash from a previous sale are using their buying power: About a quarter of the market in June and July paid cash. Source: NAR

Cash buyers are losing some of the ground they gained during the pandemic housing boom, creating a slightly more favorable market for borrowers relying on mortgage financing. All-cash purchases accounted for 31.4% of home sales during the first four months of 2026, down from 32.3% during the same period last year, according to a new Realtor.com report. The change was modest, but the underlying sales figures showed cash buyers pulling back faster than the market overall. The number of cash transactions fell 11.2% year over year, compared with an 8.5% decline in total home sales. “Cash buyers aren’t disappearing; they’re simply becoming less dominant as the housing market finds its footing,” said Hannah Jones, senior economist at Realtor.com. “More inventory and moderating prices are giving financed buyers more opportunities to compete.” The national median sale price rose only 0.2% year over year during the period covered by the report. That was down from 1.8% growth in 2025 and well below the 15.4% increase recorded at the market’s 2021 peak. Slower price growth, improving inventory, and fewer bidding wars may reduce some of the pressure on borrowers who cannot waive financing contingencies or close as quickly as cash purchasers.  Still, a 0.9-percentage-point decline in cash share does not represent a wholesale reversal. Buyers without financing continued to account for nearly one in three transactions nationally, and the prevalence of cash varied widely by market and price range.  Source: National Mortgage Professional

Clean homes with high-end filtration systems for air and water are among the top three most important features sought by home hunters in America. More than one-third (36%) of U.S. house hunters say a “clean” home, one with high-end filtration systems for air, water, etc., is among the top three most-important features in the next place they live. This is based on a Redfin survey conducted by Ipsos. Redfin noted that makes it the most common priority for prospective homebuyers, along with security systems out of a list of 22 features. Redfin said, in fact, that clean homes and security systems outrank every other feature it asked about, by a longshot. Views come in third, with one-quarter (25%) of prospective buyers saying they’re a top priority, followed by smart-home technology (20%). Backup power generation — such as solar panels or generators—round out the top five, with 19% of house hunters ranking it as a top three priority. Redfin noted that climate resilient upgrades or features also are important to prospective buyers, with one in seven (14%) ranking it as one of their top considerations. Features that take health and climate risks into account are ranked higher than luxurious upgrades like home theaters (7%) and outdoor kitchens (10%). The survey wasn’t conducted in response to wildfire and smoke emergencies, but the results underscore a broader trend. Prospective homebuyers are placing a premium on features that help create a healthier indoor environment. For example, high-end air and water filtration systems can help reduce exposure to smoke and other pollutants, while growing interest in climate-resilient upgrades suggests buyers are increasingly looking for homes that can better protect them from the impacts of extreme weather and environmental risks.  Source: MP Daily

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This upcoming Labor Day weekend will have a special meaning with regard to the American labor force. Always held on the first Monday in September, this particular Labor Day is on the very last possible day – September 7th.  Why is that important?  Typically, the August jobs report is released after Labor Day.  But this year, Labor Day weekend will feature both the August jobs report on Friday and Labor Day on Monday.  Thus, Labor Day weekend will really have an extra focus on the labor market.  Considering the weak employment report released for July, we will be hoping for a last-minute surge as the summer comes to a close.

Of course, Labor Day weekend is also the unofficial end of summer, even though fall does not start for a few weeks. Kids are back in school and that means that summer vacations are over. Traditionally this weekend represents the start of the fall real estate season as well. The fall real estate season is usually not as strong as the spring market, however in our present economy the direction of interest rates could have as much influence on the real estate market as the calendar. We had an early real estate spring this year because rates eased, but late spring and summer were a bit quieter as mortgage rates reacted to higher energy prices caused by the conflict in the Middle East.

The economy has certainly slowed a bit as the year progressed. Last week the estimate of the second quarter’s economic growth was not revised from the original estimate. The 1.5% growth rate by itself is indicative of an economy muddling along, which is not surprising considering the tepid employment sector. In any other time, a slow economy would have brought interest rates down from today’s levels, but elevated energy prices have kept the markets on edge. Theoretically, a slower economy should reduce energy consumption which would counterbalance somewhat the influence of the Middle East conflict.  But markets don’t always react in concert with theory. Regardless of this conundrum, we hope everyone had a great summer and happy Labor Day!

Weekly Interest Rate Overview

The Markets. Mortgage rates were mostly unchanged this past week.  According to the Freddie Mac weekly survey, 30-year fixed rates rose one tick to 6.66% last week from 6.65% the previous week. In addition, 15-year rates increased to 5.98%. A year ago, 30-year fixed rates averaged 6.56%, 0.10% lower than today. Attributed to Freddie Mac: The economy remains resilient, demonstrated by steady consumer spending and rising household incomes. More homes coming on the market and slower price growth in many areas are giving buyers better options and helping create a more balanced housing market. Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Real Estate News

Over half of new single-family homes built in 2025 were two or more stories, according to the Census Bureau’s Survey of Construction. But the share of homes started with two or more stories fell in 2025, reflecting increased building activity in regions that prefer single-story homes. Nationwide, the share of new homes with two or more stories fell from 52.5% in 2024 to 51.4% in 2025, while the share of new homes with one story rose from 47.5% to 48.6%. This share varied significantly across the nation. Two-story homes remain more popular in most areas of the country. But the areas seeing the most new homes built tend to prefer single-story homes. The Northeast and the West had higher shares of two or more stories, while the entire Central time zone saw more single-story homes.  Even in areas that prefer multistory homes, the single-story share is growing. For example, the single-story share in the Pacific has increased in seven of the last eight years, from 32.7% in 2017 to 47.5% in 2025. This could reflect the increased cost to build homes and developers focusing more on moderate and low-cost housing.  Source: National Association of Home Builders

Moving is never easy, but lately, more people are trying to keep the process quick, small, and breezy. In the first four months of 2026, bookings for help with a partial move were up 37% from the same period last year, while short-distance relocations jumped 29%, according to data shared by Taskrabbit. In addition, same-day bookings for moving help jumped 19%. These stats indicate that more people are moving smaller loads faster across fewer miles. In other words, micro-moves are on the rise.  “We’re definitely seeing a shift toward smaller, more frequent moves—people are moving for more immediate opportunities like a new job, a better apartment deal, a roommate situation changing, or simply wanting to try out a new city or neighborhood,” says Nick Friedman, co-founder of College HUNKS Hauling Junk & Moving. “We’re also seeing more people make decisions quickly—instead of planning a move months in advance, some customers are reaching out within days because they have more flexibility and fewer belongings to coordinate.” This tracks with the micro-moving trends Taskrabbit identified, especially, but not solely, in urban centers.  “While cities like New York, Chicago, and San Francisco are seeing strong growth in studio and small-unit moves, we’re seeing even faster growth in smaller, suburban markets, leading short-distance and local move bookings to rise nationally,” says Chris Ager, chief commercial officer at Taskrabbit. “This tells us that the idea of moving lighter and faster is resonating across many geographies, whether that means leaving a city for a suburb, moving between neighborhoods, or simply downsizing within an area.”  Source: Taskrabbit

Carson Austin began to worry after his home had been sitting on the market for a couple of months with barely any interest from potential buyers.  It was early 2025, and he had listed the 4,600-square-foot Georgetown, Texas, property for $1.6 million, which he thought was a competitive price, comparable to other large homes in the area. But mortgage rates were hovering around 7%, keeping buyers out of the market and sales stagnant. So Austin decided to try something a bit unconventional. He offered seller financing — an agreement in which the seller acts as the lender, typically providing the buyer with a short-term home loan. In Austin’s case, he held firm on the home’s sale price but offered a below-market interest rate to entice buyers. As soon as he offered the creative financing option, interest picked up. Within two days, the house was under contract with a buyer who agreed to a 35% down payment and a six-year seller-financed loan with a 4% interest rate. Seller or owner financing gained popularity in the 1970s and 1980s, when interest rates were sky-high, but it developed a bad reputation for lacking sufficient protections, particularly for low-income buyers. However, as mortgage rates have soared since 2022, the creative financing strategy has regained popularity, despite remaining a niche offering. The practice is increasingly common in higher-end home sales, according to Realtor.com. Sales involving seller financing grew by 8% in dollar volume to more than $30 billion between 2023 and 2024, according to Note Investor. ” Seller financing often appeals to buyers who want a below-market interest rate or who are struggling to qualify for a traditional mortgage. The so-called bridge loan from the seller, typically lasting about three years, provides the buyer with time to wait for rates to come down and find a traditional mortgage. Meanwhile, sellers can get an edge in the market and benefit from earning interest on the loan.  “At its best, seller financing creates genuine win-wins,” said Ryan Leahy, who founded MORE Seller Financing. But the practice can be financially and legally risky without the right protections. Leahy said that seller financing can have “lots of pitfalls and risk if it’s not done right.” Source: Business Insider

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In our last commentary we discussed the Federal Reserve’s reaction to what they termed “elevated inflation.”  The recently released minutes from their last meeting and several speeches delivered since that meeting have served to indicate that there are Fed Governors who are ready to increase interest rates in the near future. Instead, they woke up to a big surprise during the early part of August. Employment data for the month of July revealed that 23,000 jobs were shed, In addition, the previous two months of job gains were revised downward by 103,000 jobs.

Taken together, that is a loss of 126,000 jobs. Since the economy has been adding only about 30,000 jobs per month over the past year, that number is extremely significant. Taken together with recent data showing a 1.5% growth rate for the economy during the second quarter (subject to revisions) – the Fed has another worry on their hands.  That worry is slowing economic growth. It will be that much harder for the Fed to raise interest rates if the economy is not growing strongly enough. They can’t lower rates in the face of elevated inflation, and they can’t raise rates because of slow economic growth. That is called being between a rock and a hard place.

The good news is that the Fed is not meeting in August. Their next meeting is in mid-September. By that time, we will have another jobs report to chew on, as well as one revision of the measure of economic growth for the second quarter. Plus, there will be a few inflation readings as well. Let’s hope that the economy reverses some of these job losses and inflation eases as the situation in the Middle East calms down. Leaving rates steady would not be as much of a concern if these two scenarios come to fruition. In the above forementioned “rock and hard” place situation, this is the best we can hope for. We won’t have to wait very long to see some evidence as the Fed’s favorite inflation statistic is due out this week and the jobs report for August will be released at the end of next week.

Weekly Interest Rate Overview

The Markets. Mortgage rates eased slightly again this week. Two conflicting forces caused a significant amount of volatility. The lack of progress in the Middle East pressured rates higher while the Treasury initiated an expanded bond buyback program which helped alleviate this pressure. According to the Freddie Mac weekly survey, 30-year fixed rates fell to 6.65% last week from 6.67% the previous week. In addition, 15-year rates decreased one tick to 5.95%. A year ago, 30-year fixed rates averaged 6.58%, 0.07% lower than today. Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Real Estate News

Home prices rose in 80% of metro markets in the second quarter of 2026, up from 71% last quarter, according to the National Association of REALTORS®’ latest report. The data points to stronger homeowner equity and continuing affordability challenges for buyers.  The median price for a single-family existing home in America is now $434,900, up 1.5% compared to this time last year.  NAR Chief Economist Lawrence Yun explained how home prices fit in the larger context of closed transactions, weighing additional economic forces.  “Home sales increased despite mortgage rates rising. This testifies to the potential housing demand building up from steady job and income gains,” Yun said. “Sales rose in three of the four major regions, with the South leading the way due to faster job growth. The Northeast was the exception, held back partly by slower job growth and faster-appreciating home prices, which hurt affordability.”  Yun added, “It is welcoming to see incomes rising faster than home prices, which has helped boost affordability—but the big short-term challenge to affordability is coming from rising mortgage rates.” NAR data shows that year-over-year the typical monthly mortgage payment is down. Those who bought an existing single-family home with a 20% down payment in the second quarter of 2026 are paying roughly $52 less per month than last years’ buyers. Housing costs are also eating up less of those groups’ household incomes. Typical families are now spending 23.8% of their income on their mortgage payments, down from 25.5% last year.  Source: MP Daily

Americans need to earn nearly $110,000 a year to comfortably afford the typical home for sale in the United States, even as housing affordability has shown modest signs of improvement over the past year. A  Redfin report found that a household would need an annual income of $109,796 to purchase the median-priced U.S. home in June 2026 while spending no more than 30% of said income on housing costs. That’s 0.5% lower than the record high of $110,382 a year ago, meaning the income needed to buy a home has changed very little over the past year. The stabilization comes as household incomes have continued to rise alongside home prices. Redfin estimates the median U.S. household earned $87,599 in June, up 4% from a year ago, while the median home sale price increased 2.2%. Mortgage rates also eased slightly but remained in the mid-6% range, keeping borrowing costs elevated.  Even with those gains, according to Redfin, the typical household still earns about $22,200 less than what’s needed to purchase the median-priced home and be financially comfortable. That’s an improvement from the roughly $26,100 gap a year ago, and nearly $28,900 two years ago.  Redfin Senior Economist Yingqi Xu said that the market has become “a bit more manageable” for buyers because it is now a “buyer’s market” in much of the country, giving shoppers more options and stronger negotiating power.  Source: USA Today

If the Baby Boomer generation had a theme song for today’s housing market, it might be “Born to Run” – and the numbers back it up. According to the 2026 Home Buyers and Sellers Generational Trends Report, buyers aged 61 to 79 remain the largest generational force in home buying, accounting for 42% of buyers (unchanged from last year) and an impressive 55% of sellers. Behind those numbers is a generation using its market power with purpose, making moves guided as much by lifestyle and relationships as by financial leverage. Many Boomers are making moves rooted in relationships and lifestyle. Like the road trips of “Easy Rider,” proximity matters: 31% of Older Boomers (ages 71–79) and 23% of Younger Boomers (61–70) bought homes to be closer to friends and family. Downsizing is also part of the story. Sixteen percent of Older Boomers said they purchased a home specifically to downsize, compared to 11% of Younger Boomers. Meanwhile, 15% of Younger Boomers bought homes with retirement in mind. Flexibility is a hallmark of this life stage, and often housing equity makes that choice easier. Veterans make up a significant share of this group. Twenty-eight percent of Older Boomers and 18% of Younger Boomers served, with VA loans playing a key role: 16% of Older Boomers and 14% of Younger Boomers used VA financing. Boomers are also more likely to own additional property. Six percent of both Younger and Older Boomers own one or more vacation homes. Senior-related housing is especially popular, with 23% of Older Boomers and 13% of Younger Boomers choosing these communities. Financially, many Boomers are entering their “cash-is-king” era. Thirty-nine percent of Younger Boomers and 46% of Older Boomers paid all-cash for their homes. Among those who financed, more than half used proceeds from selling their prior residence for the down payment. Source: National Association of Realtors

The post August 25, 2026 – The Fed Has Another Worry appeared first on Starwest Mortgage Corporation.

A few weeks ago, the Federal Reserve’s Open Market Committee met to discuss Fed policy. All eyes were on the Fed as recent events in the Middle East had unleashed further pressure upon inflation. In the meantime, the Chairman of the Federal Reserve, Kevin Warsh, was conducting his first meeting. At the end of the day (or precisely Wednesday early afternoon), the Fed decided to keep their benchmark rate steady for the fifth straight meeting, which was not a surprise. It was also not a surprise that three members of the committee voted to increase interest rates in light of recent events.

Even though the Fed kept rates steady, the bond market forced longer term interest rates higher immediately. Thus, the question was – why did interest rates rise when the Fed kept their rates steady? When considering the circumstances, it is important to remember that the Fed’s benchmarks rates are very short-term and the interest rates which rose were longer-term rates. Thus, the spread between short-term rates and long-term rates widened. This explains what happened technically but does not explain the poor reaction from the bond market. To achieve that answer, we must dig deeper.

The Fed’s statement after the meeting acknowledged that inflation was elevated. That statement by itself would worry the bond markets, even though the Fed was stating the obvious. Moving further, in the face of elevated inflation, the Fed did absolutely nothing. It kept status quo. The bond market expects the Fed to be more vigilant in this regard. A stronger statement would have helped mitigate the reaction. Meanwhile, from a political standpoint, the Administration for months has been putting a lot of pressure on the Fed to lower interest rates and since the new chairman was the Administration’s pick, the markets are worried that the Fed won’t be vigilant enough. This concern comes despite the fact that Chairman Warsh has a history of being quite conservative in this regard.

Weekly Interest Rate Overview

The Markets. Mortgage rates eased slightly this week and continued to move lower after the survey period closed due to the encouraging inflation reports.  According to the Freddie Mac weekly survey, 30-year fixed rates fell to 6.67% last week from 6.69% the previous week. In addition, 15-year rates decreased to 5.96%. A year ago, 30-year fixed rates averaged 6.58%, 0.09% lower than today. Freddie Mac noted that housing affordability has improved from a year ago, and recent increases in purchase and refinance applications suggest that borrowers continue to respond to even modest changes in mortgage rates.  Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Real Estate News

Perhaps the most consequential piece of the new landmark housing legislation involves an astonishingly simple change to a 50-year-old federal law. Manufactured houses, or mobile homes, no longer must have a permanent chassis, the steel under-frame used to transport the house and then left attached. The U.S. desperately needs more affordable starter houses for low- and middle-income folks currently priced out of the market, and some builders and housing advocates say this little tweak could help do the trick. Manufactured homes can cost from 27% to 65% less than comparable houses built on site, according to an estimate from the Niskanen Center. While most U.S. homes are “stick-built” on site, manufactured homes get built in factories. There are economies of scale — standardized materials, centralized purchasing, controlled weather conditions and a stable workforce (crucial at a time when construction labor is in short supply due to the immigration crackdown). Proponents say there’s more to it. Shedding the bulky steel structure under a house opens up a whole new array of design opportunities for these often-stigmatized homes. The change could make multi-story manufactured homes, lower-to-the-ground designs and basement installations easier and less costly — amping up their appeal. What they’re saying: “I think we’re going to see a lot of clever ways that people decide to use these homes,” says Joel Berner, a senior economist at Realtor.com. For example, it could make manufactured housing a more practical option for accessory dwelling units, or ADUs, which more states and cities are allowing as they face housing shortages. Yes, but: There are still roadblocks ahead. Many local zoning laws restrict the placement of manufactured housing, partly due to the stigma. HUD still has to write the standards to adopt the change, and states have one to two years to align their laws.  Source: Axios

Foreign buyers continue fleeing the U.S. housing market, with their activity falling 14 percent between April 2025 and March 2026 to the second-lowest level since the National Association of Realtors (NAR) started tracking purchases in 2009. Paige Terryberry, a senior research fellow at the conservative think tank Foundation for Government Accountability, made the point in a recent opinion piece for Fox News that “each home bought by someone from outside the U.S. leaves one fewer home for Americans to buy.”  Their decline in activity, then, should offer some modest relief to U.S. buyers, who are facing less competition for the available for-sale inventory across the country. Foreign buyers purchased 67,100 homes in the 12 months between April 2025 and March 2026—the equivalent of 1.7 percent of all home sales. That was down 14 percent from a year earlier.  In dollar terms, their purchases totaled $45.3 billion, or 2.0 percent of all home sales within that period, down 19 percent from a year earlier. Because they represent only a very small share of all U.S. home purchases, the withdrawal of foreign buyers from the market will have a limited impact on Americans. “The decline in foreign homebuyer activity mirrors the decline in international visitors and tourists to the United States,” NAR chief economist Lawrence Yun said in a statement.  The homes they bought were relatively more expensive than the ones purchased by U.S. residents—for a median price of $465,000 compared to $413,600—and nearly half of these (48 percent) were paid all-cash—something that, in the overall market, only happens in 28 percent of deals.  Source: Newsweek

Gen Z mortgage shoppers in the nation’s 50 largest metros plan to put down far less than any other generation, according to an analysis of more than 130,000 mortgage purchase inquiries submitted through the LendingTree platform.  However, not all younger shoppers plan to put down less. Millennials join baby boomers, the oldest generation in our analysis, in planning to make the largest down payments of any age group across the nation’s largest metros. Planned down payments also vary widely by metro, with Gen Z shoppers in two locations planning to make six-figure down payments. Key findings include the fact that, across the nation’s 50 largest metros, Gen Z mortgage shoppers plan to put down a median of $41,250, the lowest of any generation analyzed and 25% below the overall median of $55,000. Millennials and baby boomers tie for the highest median planned down payment at $65,000, while Gen X shoppers plan to put down a median of $56,250.  The gap is consistent with broader financial differences across age groups. On average, Gen Z adults tend to have lower incomes, lower credit scores and less home equity than older generations, making saving for a down payment a Herculean task for many people that age. Even so, the inquiry data shows many Gen Z shoppers are preparing to buy homes despite those challenges.  Source: Lending Tree

The post August 18, 2026 – In Case You Are Wondering Why appeared first on Starwest Mortgage Corporation.

Sure, there is a lot more to the economy than these two factors. But we can’t think of two headlines which have garnered more attention this year. Obviously, the Iran situation affects the economy, and the next result of the conflict has been higher energy prices, rising interest rates and flagging consumer confidence. But overall, the economy has kept moving forward, buoyed by a resilient stock market.  The employment sector is a primary indicator of the health of the economic sector. That is why last week’s report was being watched so closely.

So how did the employment report come out?  The economy lost 23,000 jobs in June.  This number was significantly below expectations. In addition, the previous two months of job gains were revised downward by 103,000 jobs, making the net loss for the month 126,000 jobs. Despite the loss of jobs, the unemployment rate fell by 0.1% to 4.1%, which is a continued anomaly related to the sluggish workforce growth.  On the inflation front, wage growth increased by 3.2% annually, lower than expected. Overall, this was seen as a weak report and creates additional concern regarding the economy overall at a time when the conflict overseas remains a major factor contributing to this concern.

Which leads us back to the conflict in Iran which has spread throughout the Middle East. After weeks of heavy attacks and counter attacks, it appears that the parties have started talking again and a cease fire could be in the works. Of course, we have heard and lived through this story several times before. Let’s hope cooler heads will eventually prevail, and a ceasefire becomes the basis for a permanent truce. The markets could use some good news because we are due for the July inflation reports this week and it is not likely that this news is going to be good. Remember, the markets are not reacting to what happened last month, they will react to what they think will happen next month. That’s where hope comes in.  The phrase “hope is eternal” means that optimism never dies!

Weekly Interest Rate Overview

The Markets. Mortgage rates started to ease this week as news of an agreement to open the Strait of Hormuz was circulated, though 30-year rates rose slightly from last week.  According to the Freddie Mac weekly survey, 30-year fixed rates rose to 6.69% last week from 6.66% the previous week. In addition, 15-year rates decreased to 6.01%. A year ago, 30-year fixed rates averaged 6.63%, 0.06% lower than today. Freddie Mac noted that, while mortgage rates continue to influence affordability, the housing market is showing signs of adjustment, with listing prices modestly below year-ago levels and for-sale inventory improving from the limited supply seen in recent years. Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Real Estate News

The spate of wildfires, hurricanes, tornadoes and floods fueled by man-made climate change that have plagued vast swaths of the country in recent years is changing the housing industry. That’s because people who are seeking to rebuild in disaster-prone regions are searching for greater peace of mind. As a result, they’re turning away from stick-builds and embracing prefabricated homes that are made using materials that are fire-resistant and can withstand extreme weather, and that are now considered standard, and are often more affordable.  Manufacturers are meeting that demand with innovative and safer alternatives. Many companies are designing prefab houses that can withstand category 5 hurricane winds — up to 250 mph — earthquakes, hailstorms, massive snowfall and fire. Depending on customizable preferences, prices can vary from below $100 per square foot to over $500 per square foot, excluding land. But even those prices often fall under traditional on-site building costs in many parts of the country. The Manufactured Housing Institute reports that as of 2024, nearly 21 million people in the U.S. live in manufactured or mobile homes. Manufactured homes made up more than 9% of new home starts in the same year. Meanwhile, consumer prices have remained largely unchanged over the past three years, making them increasingly attractive to first-time buyers.  Given the escalating climate risks across the country, Harrison Langley, CEO of MDLR Brands, believes that traditional on-site building is unsustainable. His company has built single-family prefabricated homes, apartment buildings and commercial structures following 2019’s Hurricane Dorian in California, Tennessee and North Carolina. Source: NPR

Redfin released a survey querying why U.S. residents might be looking at out-of-state moves. The top reason reported by movers was weather, at 22%. No. 2 was concern about climate change, at 21%. Next were concerns about safety/crime at 20% and moving for a job or job relocation at 19%. Reported at 18% each were folks looking to be with/nearer to family, for lower overall cost of living and to upgrade to a better home or neighborhood. Rounding out the top 10 were wanting more space (16%), concerns about job security (15%) and for lower rental/home prices (15%). Americans searching for better weather are consistently moving from the northern parts of the U.S. to areas like Florida, Las Vegas and Sacramento. Of the respondents who are planning to move out of state, 14% are moving to Florida, 13% are moving to Texas and 11% are moving to California. “Many movers are looking for a location that aligns with their ideal lifestyle, and weather can play a meaningful role in that decision,” said Redfin Economist Yingqi Xu. “Whether it’s escaping harsh winters, the desire for year-round outdoor recreation or looking to sunshine as a mood booster, weather is an important consideration for many Americans who are relocating.” But movers within their current state point to different reasoning. For those respondents, 29% say they’re seeking a better home or neighborhood and 29% say they want more space. Twenty-one percent say they are concerned about safety or crime, 14% are concerned about natural disasters or climate risk and 9% are looking for better weather.  Source: Redfin

There are two kinds of homebuyers: those with pets and those without. And for pet owners, a home purchase can hinge on whether a listing works as well for their pet as it does for them, according to new data. A new survey from Realtor.com® finds that buyers with pets often evaluate homes through an animal-first lens, prioritizing features like a secure outdoor space, durable interiors, and communities where pets are allowed.  “I see pet needs influence decisions all the time,” echoes Miltiadis Kastanis, executive director of sales at Compass. “A buyer might really like a home, but if it does not feel right for their pet, whether it is the lack of outdoor space or the overall environment, they will walk away.” For many buyers, pets were not a side consideration but a real force in the home search—one strong enough to shape decisions and even justify paying more for the right features.  The survey answers pointed to a strikingly consistent definition of what makes a home truly pet-friendly: secure outdoor space, durable and easy-to-clean interiors, and neighborhoods or developments where pets are clearly allowed. “Pet friendly means having a good-sized backyard that is secured well with a fence or wall,” said Katey, a millennial first-time homebuyer.  And when buyers find those features, some are willing to pay more for them, the research found—a reality that agents say mirrors what they see in home searches every day. And that demand didn’t stop at closing. The survey found that while many buyers didn’t make major pet-related changes after moving-in, others invested in upgrades that made the home more durable, convenient, or comfortable for their animals.  Source: Realtor.com®

The post August 11, 2026 – Its All These Two Factors appeared first on Starwest Mortgage Corporation.

First, we thought that the employment sector was recovering from a period of lackluster gains.  Then we thought that the conflict in Iran was winding down. In July we found that both thoughts were quite premature. In early July we found out that the economy added only 57,000 jobs in June and the previous two months of gains were revised downward by 74,000 jobs, a net loss of almost 20,000 jobs for the month.  Then in mid-July, the agreement between Iran and the U.S. collapsed as the rockets began firing again and traffic was disrupted within the Strait of Hormuz.  Moving into August, the hope is that both trends are reversed again.

We begin August with the July employment report, which will be released this Friday. During the past 12 months, the economy has added an approximate average of 32,000 jobs per month. This average is significantly below the pace of previous U.S. economies which were non-recessionary.  As we have previously mentioned, the sluggish population growth is one factor contributing to these low averages, which explains why the unemployment rate is not rising.  This leads to a key question – If job gains remain subdued, will the unemployment rate start trending higher? Friday’s report might provide a clue to this puzzle.

Meanwhile, the situation in Iran has threatened to escalate even further than when it intensified during the initial conflict.  Our military bases throughout the Middle East were being hit in the middle of July.  Shipping was again disrupted and energy prices once again headed upward. This news came on the heels of the tamest inflation reports we had seen all year, which was quite ironic. Long-term wars are harbingers of inflation even when energy supplies are not disrupted because of increased government defense spending.  Again, ironically this spending can cause an increase in the rate of job creation. Regardless, it is everyone’s hope that the war does not evolve into a long-term engagement.

Weekly Interest Rate Overview

The Markets. Mortgage rates were very volatile after the Fed announced its decision to hold rates steady, despite acknowledging that inflation was elevated.  According to the Freddie Mac weekly survey, 30-year fixed rates rose to 6.66% last week from 6.58% the previous week. In addition, 15-year rates also increased to 6.04%. A year ago, 30-year fixed rates averaged 6.72%, 0.06% higher than today. Freddie Mac noted that the housing market continues to benefit from more available inventory, providing prospective homebuyers with additional options and helping support buyer activity as mortgage rates fluctuate. Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Real Estate News

Gen Z is no longer an emerging homebuyer segment — it’s becoming a primary source of purchases. New Intercontinental Exchange (ICE) data shows the generation accounted for a record 20% of purchase rate locks in the second quarter, while Millennials and Gen Z now make up two-thirds of financed purchases. The ICE Mortgage Monitor report suggests that even with affordability remaining a challenge, younger buyers continue finding ways into homeownership through government-backed financing and increasingly creative approaches to funding down payments. At the same time, home price appreciation accelerated in June, underscoring that affordability pressures remain even as inventory continues to improve. “Gen Z’s rise to nearly 20% of rate locks is one of the clearest signs yet of a generational handoff in the homebuying market,” said Andy Walden, head of mortgage and housing market research at ICE. “Despite facing one of the tougher affordability environments in decades, younger buyers are finding ways to become homeowners.” ICE said Gen Z’s market share is likely to continue climbing because much of the generation is only beginning to enter its prime homebuying years. The oldest members of Gen Z are approaching age 29, placing more of the generation squarely within prime first-time homebuying years. ICE found the cohort now represents nearly one-third of all first-time homebuyer mortgages and 27% of FHA purchase lending, highlighting continued reliance on government-backed financing to overcome affordability constraints.  Source: National Mortgage Professional

Rising foreclosures offer an opportunity for affordability-stressed buyers to find steep discounts, especially in hot markets as housing costs strain American homeowners. That’s according to a new report from Realtor.com, which found that foreclosures are increasing from extreme pandemic lows, with the current rate bouncing back to roughly 2019 levels. While this increase reflects the difficulties many homeowners are facing in today’s economy, it remains far below the spike during the 2008 financial crisis. The rise in foreclosures is tied to increasing housing costs. Buyers who purchased their homes after 2023 are at a higher risk of foreclosure because they have built less equity and have not benefited from price appreciation.  Some may owe more than their home is worth, making it harder to sell or refinance if they run into financial trouble. “Homeowners who purchased near the peak of the market with small down payments are most exposed when prices soften, because they had very little equity buffer to begin with. If the estimated value of their home falls while their loan balance stays largely fixed, they can slip into negative equity territory quickly,” Realtor.com senior economic research analyst Hannah Jones explained in a related report.  Realtor.com notes that, after foreclosure, homes are typically auctioned. If they do not sell at auction, they become “Real Estate Owned” (REO) properties and are listed for sale by the lender.  As of April 2026, REO homes made up about 1.3% of all homes for sale, and final prices were 27.2% below estimated market value.  Source: The Mortgage Note

When you drive through neighborhoods in the U.S., you might not expect that a number of those homes are empty. In fact, according to a new study from LendingTree, 14.5 million U.S. homes — roughly 1 in 10 nationwide — are unoccupied. But, LendingTree said, that doesn’t always mean availability. It said that some empty homes are used seasonally, while others are available for rent — and fewer than 800,000 are listed for sale. LendingTree said that the differences in vacancy type help explain why housing can feel scarce even when millions of homes sit empty. LendingTree said it analyzed U.S. Census Bureau data to see where vacancy rates are highest, how they’ve changed over time, and what they may reveal about local housing markets.   Of the 14.5 million U.S. homes which are vacant, 4.7 million are used seasonally or recreationally and 2.6 million are available to rent.  The national vacancy rate fell by 0.31 percentage points, or about 302,000 homes, between 2023 and 2024. Generally, a vacancy rate between 7% and 8% is considered consistent with a balanced real estate market, providing enough available housing to accommodate buyers and renters without creating significant shortages or surpluses.  “A healthy level of vacancy is generally a good thing because it gives buyers and renters more options and helps reduce competition for available homes,” said Matt Schulz, LendingTree Chief Consumer Finance Analyst.  Source: Scotsman Guide

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The Federal Reserve has new leadership in the form of Chairman Kevin Warsh.  But that does not mean that the direction of this government entity is changing all that much.  Sure, Chairman Warsh brings a new perspective to the Fed. He is intent on changing how the Fed communicates with the markets, the size of the Fed’s balance sheet and even its view on inflation, as reported by CNBC. For example, we can expect less in terms of projections from the Fed in the future and a move towards a smaller balance sheet. He would also like the Fed to embrace changes that AI could bring.

However, amongst all these planned changes, there are still fundamental differences between the thinking of the Fed Governors. The minutes from the last meeting – the first chaired by Warsh – is a prime example of this discordance. There are members of the Fed who would like to raise interest rates now in light of the present elevated level of inflation. There are others who believe that this inflationary period is temporary and we should wait it out by keeping rates level.  And there are some who believe that lower rates are warranted due to slower economic growth which could portend a recession. The result was a stalemate, and the Fed kept rates right where they are at the last meeting.

The Federal Reserve Open Market Committee meets again this week, and the economic situation has not changed all that much. Iran is still vacillating between war and armistice. Inflation is still elevated. Long-term interest rates remain elevated. Yet, the economy does not appear to be slipping into recession territory. Instead, the economy seems to be humming along at a slow but positive pace, being held back by muted hiring but being supported by continued consumer spending. So, what will the Fed do when they meet this week?  Most are betting on another split decision which will result in the Fed keeping rates where they are.  In other words, the more things change, the more they stay the same. Stay tuned for the announcement early Wednesday afternoon.

Weekly Interest Rate Overview

The Markets. Mortgage rates continued to rise in the past week as hostilities in the Middle East intensified. Oil prices continued to react to threats on shipping in the Middle East, fueling the rise in rates. According to the Freddie Mac weekly survey, 30-year fixed rates rose to 6.58% last week from 6.55% the previous week, with further increases occurring after the survey period. In addition, 15-year loans also increased to 5.96%. A year ago, 30-year fixed rates averaged 6.74%, 0.16% higher than today. Freddie Mac noted that market conditions continue to evolve. Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Real Estate News

Realtor.com report finds investors accounted for 11.3% of home purchases in 2025, as small investors gained market share and institutional buyers continued to retreat. As existing-home sales remained near multi-decade lows in 2025, real estate investors continued buying at a steady pace, according to a new report from Realtor.com. The Realtor.com Investor Report found that investors accounted for 11.3% of all home purchases in 2025, up slightly from 11.0% in 2024. Roughly 534,000 homes were purchased by investors last year, a 0.7% increase from the prior year, even as non-investor home sales fell 2.1%. At the same time, investor selling activity slowed. Investors sold approximately 442,000 homes in 2025, down 1.5% year over year and the lowest level since 2020. The gap between investor purchases and sales widened to roughly 92,000 homes, suggesting investors remain committed to accumulating residential real estate despite elevated rates and affordability challenges. “The investor market has found a new equilibrium,” said Hannah Jones, senior economist at Realtor.com. “With small investors now comprising nearly two-thirds of all investor purchases and large institutional players continuing to pull back, the dynamics shaping competition in entry-level housing are shifting — but that competition hasn’t gone away.”  Mega investors made up just 7.5% of investor purchases by 2025, which is their lowest percentage since 2011. Since then, their purchase volumes have decreased by over 70%. Source: National Mortgage Professional

Nearly three-quarters (74%) of U.S. homeowners would rather be at home than anywhere else, according to a recent Redfin-commissioned survey.  Redfin reported on how Americans feel about their homes and their neighborhoods. Redfin commissioned Ipsos to conduct the survey of 4,000 U.S. residents, including 2,280 homeowners and 1,431 renters. Results in this report are based on a single question which asked respondents to answer how likely they were to agree or disagree with a set of statements about how they relate to their current home and neighborhood. Homeowners were about as likely to agree that their home is a reflection of who they are (74%), and that they feel a sense of belonging in their neighborhood (72%). By contrast, most renters (57%) said their home is just a place to live. Just 35% of homeowners said the same. “For many homeowners, a home is more than a place to sleep and store belongings—it’s a reflection of who they are,” said Redfin Principal Economist Sheharyar Bokhari. “Homeownership can help people put down roots, build relationships and create a space that feels uniquely their own. Those emotional benefits are a big reason why owning a home remains a cornerstone of the American Dream. While affordability remains a challenge, today’s buyer’s market is giving some house hunters more negotiating power. Buyers are increasingly able to secure concessions and include inspection contingencies, helping them make more informed decisions before taking the leap into homeownership.”  Source: Redfin

Meet the real-life Golden Girls. In the much-loved 1980s sitcom the four wisecracking women who share a house in Miami met through an ad on a supermarket bulletin board. Present day in Denver, the housing matchmaker is Sunshine Home Share Colorado, a local nonprofit that Alison Joucovsky, a senior services administrator, founded in 2016 when the problem became urgent. “My phone was ringing off the hook,” she said, recalling anxious pleas from older residents spending most of their Social Security checks on rising rent or facing years-long waiting lists for subsidized senior housing. Home sharing “is a really efficient way to create affordable housing and to support older people who want to age in place,” Ms. Joucovsky said. Carefully vetting both “home providers,” who may be rattling around in family houses now too big and too empty, and “home sharers” seeking reasonable rents, Sunshine facilitated 31 shares last year, a record for the nonprofit.  “The cost of developing and building new housing is astronomical, and so is the length of time it takes,” said Laura Fanucchi, president of the National Shared Housing Resource Center and an administrator with HIP Housing, a home-share organization in San Mateo County, Calif. “Why not make use of existing housing stock?” About 55 organizations around the country offer these services — and demand is growing, driven by housing shortages, rising rents and sales prices that affect both the old and the young. Legislators in several states are working to promote home sharing as an option.  The need is acute. About a third of households headed by someone 65 or older were “cost-burdened” in 2024, according to an analysis by the Harvard Joint Center for Housing Studies. That means they spent more than 30 percent of their income on housing. To help increase their reach, some home-share programs now supplement or replace the traditionally labor-intensive matching process with online platforms. Source: The New York Times

The post July 28, 2026 – Split Fed appeared first on Starwest Mortgage Corporation.

With all the focus in the media upon the efforts of the Administration to reduce the population of illegal immigrants, as well as tighten up the borders – there has been little focus in the media upon the effects of the reduction of legal immigration. According to the Cato Institute, the reductions of legal immigration are approximately 2.5 times as large as the reduction of illegal immigration. For example, legal permanent visa issuance has been cut by about 50%. The focus of this column is not to argue whether we should be allowing more immigration, but rather how this reduction might affect the economy as a whole.

The Harvard University Joint Center for Housing Studies has indicated that Census Bureau data shows that the nation’s population growth has slowed sharply and this slower growth is fueled by a reduction in immigration together with lower birth rates. We have already seen evidence of slower population growth within the monthly employment data.  During the past 12 months the economy has added less than 40,000 jobs per month, a significant slowdown over previous years.  What is really telling is that the unemployment rate has not increased significantly. Why?  Because there is less population available to feed employment and unemployment growth.

Turning to the housing market, we have already seen early effects of a stagnant population in the form of the lack of skilled labor available to build new homes – which contributes to rising prices. The term stagnant can also be applied to the concept of mobility as the population has turned stagnant as they reside in their homes for a longer period of time. Looking at the long-term, lower population growth could potentially lead to lower demand for housing, initially for rentals but in the long-run within the purchase sector. This has the potential to wipe out the present housing shortage we have experienced. With the aging of the population and fewer younger people reaching working age, there will be even more pressure upon the social security system. Could these factors lead to a rise in the number of legal immigrants in the future? The possibility is certainly plausible.

Weekly Interest Rate Overview

The Markets. Mortgage rates rose in the past week as hostilities in the Middle East continued. The resumption of the conflict outweighed good inflation news because oil prices rose in reaction to the re-closing of the Strait of Hormuz. According to the Freddie Mac weekly survey, 30-year fixed rates rose to 6.55% last week from 6.49% the previous week. In addition, 15-year loans also increased to 5.93%. A year ago, 30-year fixed rates averaged 6.75%, 0.20% higher than today. Attributed to Freddie Mac: “Purchase application demand has weakened recently, but housing affordability is more favorable, and housing inventory continues to rise, thus the backdrop for prospective homebuyers is modestly improving.” Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Real Estate News

Roughly 3 in 5 U.S. homeowners (59%) are very satisfied with their living situation, compared with 34% of renters. That is according to a survey commissioned by Redfin, and conducted by Ipsos, in May 2026.  Key takeaways from the survey include the fact that homeowners are more likely to love where they live, but overall, most renters report they’re at least somewhat satisfied with their living situation. Homeownership typically provides greater financial security: 62% of homeowners say they can easily afford their monthly housing payments, versus just 29% of renters. In addition, people who own their home also find contentment in putting down roots in their neighborhoods and customizing their houses. Even though homeowners are significantly more likely to love where they live, most renters report overall contentment. Nearly 7 in 10 renters (69%) say they’re either “very satisfied” or “somewhat satisfied” with their current living situation, as do nearly all homeowners (90%). On the flip side, just 5% of homeowners are dissatisfied with their living situation, compared with nearly 1 in 5 renters (18%).  Owning a home allows people to customize their space to their liking, and personalizing a home by decorating, painting, landscaping, or remodeling can foster emotional connections to where you live. Nearly three-quarters (74%) of homeowners say their current home is a reflection of who they are, compared with 46% of renters.  Source: Redfin

The NAR has released a report that examines how the fixed capital gains exclusion interacts with long-term home price growth and homeowner tenure. It documents the current level of capital gains exposure among U.S. homeowners and evaluates how that exposure could change under different price growth scenarios. The purpose is to provide a factual, data-driven assessment of the scale and distribution of exposure and to clarify how it may influence housing mobility and local market conditions. The capital gains exclusion was established in a housing market with lower prices, shorter ownership tenures, and less cumulative appreciation than exists today. Key findings of this report include the fact that filing status plays a significant role in determining when homeowners cross the exclusion threshold and with fixed thresholds, each additional dollar of home price growth expands capital gains exposure.  In addition, capital gains exposure is no longer limited to the highest-cost markets. As home prices rise, more states are seeing a growing share of homeowners approach or exceed the exclusion thresholds.  Capital gains exposure reflects when homeowners bought, not just where they live or how expensive the market appears today. Housing supply depends not only on new construction, but also on the willingness of existing homeowners to move.  Source: The National Association of Realtors

The nation’s housing shortage is often framed as a challenge for first-time buyers and growing families. But another group is increasingly feeling the impact — older homeowners who want to downsize yet find themselves with few practical options. Across the country, many seniors remain in large family homes long after their children have moved away. While aging in place is often portrayed as a lifestyle choice, housing professionals quoted in a Realtor.com article said many older Americans are staying put because moving no longer makes financial sense. “We have quietly created a generation of ‘lonely nests,’” said Wendy Newman, a Northern California–area real estate agent. “Many boomers aren’t choosing to age in place. They’re trapped there economically.”  For decades, downsizing offered retirees a chance to reduce housing expenses while moving closer to family or into a home better suited to their needs. Today, however, many smaller homes, condominiums and townhouses carry price tags that rival or exceed the value of longtime family residences.  As affordability challenges persist, multigenerational living is becoming an increasingly popular alternative. According to the NAR 2026 Home Buyer and Seller Generational Trends Report, 14% of buyers purchased a multigenerational home in 2025.  Redfin reported in March 2025 that nearly one in five Americans now live in multigenerational households.  Source: HousingWire

The post July 21, 2026 – The Immigration Story appeared first on Starwest Mortgage Corporation.

With the signing of the “Memorandum of Understanding” things seemed to have quieted down in the Middle East. This was great news for the markets as immediately the price of oil and interest rates fell. And as we have mentioned previously, the stock market continued to perform well even when things did not look so rosy within the region. Of course, we all knew that the permanent road to peace would take some time and the road traveled ahead might contain several hiccups. But as long as oil and other goods were flowing through the Strait of Hormutz, the markets would continue to benefit.

Well, the path out of the strait is apparently not that straightforward, if you will excuse the pun. We were warned by analysts that it would take some time for things to get moving and it was understood that the reaction of the markets was in anticipation of better things ahead. Among other impediments was the fact that ships that were marooned within the strait for months had accumulated mussels and barnacles which had to be cleaned off. What we did not anticipate, but perhaps we should have, was the fact that shooting at the ships would occur – accompanied by escalating reprisals. Certainly, this occurrence has provided quite a deterrence to free and easy shipping.

What does all of this mean?  While we can hope for a favorable endgame that includes a permanent peace agreement, the road ahead is likely to continue to be bumpy. The markets’ initial reaction was very positive, so as reality sets in, we can expect some volatility in the markets as these bumps hit. But we expect that the consumers’ reaction during these times will be much more positive than when we were participating in an intense conflict.  Consumer confidence is the key with regard to keeping the economy, and especially the real estate markets, moving in the right direction during the summer months.  Let’s hope for a long, hot summer in this regard!

Weekly Interest Rate Overview

The Markets. Mortgage rates rose in the past week as hostilities in the Middle East reemerged after a quiet period. According to the Freddie Mac weekly survey, 30-year fixed rates rose to 6.49% last week from 6.43% the previous week. In addition, 15-year loans also increased to 5.82%. A year ago, 30-year fixed rates averaged 6.72%, 0.23% higher than today. Attributed to Freddie Mac: “Mortgage rates have not changed much recently, but economic growth and housing affordability continue to improve for homebuyers as they shop for homes in today’s market.” Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Real Estate News

Mortgage Research Network found that nearly 360,000 women under age 45 purchased homes on their own last year, representing 11.4% of all home purchase loans nationwide. The study analyzed purchase mortgages across the nation’s 50 largest metropolitan areas and found significant differences in where single women are most likely to become homeowners. The findings suggest affordability remains one of the strongest factors influencing homeownership opportunities for single-income borrowers. “Where women are buying on their own varies dramatically by market, and affordability appears to be one of the strongest drivers,” said Tim Lucas, lead analyst and report author at Mortgage Research Network. The report found that single women purchased homes at nearly twice the rate in the top-ranked metros compared with the lowest-ranked markets. Across the top five metropolitan areas, single female buyers accounted for an average of 15.8% of purchase mortgages, compared with just 7.6% across the bottom five.  While affordability helps determine where single women buy homes, income continues to play a significant role in who can enter the market. Across the highest-ranked metros, single female homebuyers earned substantially more than the typical single woman in their local market.  The study found that affordable markets in the South, Midwest, and Northeast dominated the rankings.  Source: National Mortgage Professional

Did you know there are more households with pets than children? And these beloved pets are a driver of economic activity, namely, home buying. About one-fifth of recent home buyers considered their pet when choosing a neighborhood, a share that increases among unmarried couples and single women buyers. According to the U.S. Census, the share of families with children under the age of 18 living in their home has continued to decline. The share of families with children under the age of 18 in 2024 stood at 39%, down from 52% in 1950. This is likely due to two reasons: Birth rates, overall, have been declining, and a large share of baby boomer households have already seen their children leave the nest.  This trend is also reflected among home buyers. In 1985, 58% of home buyers had children under the age of 18 in their homes. In 2024, just 27% of home buyers had a child under the age of 18 in their home. This is an all-time record low.  While the number of children in U.S. households has declined in the last 20 years, there has been a rise in pet ownership. According to the American Pet Products Association, 71% of American households own a pet. This is up from 56% in 1988. Given the increasing share of pets in households and the growing time and resources devoted to them, it is no surprise that many home buyers consider their pets the most important factor when making homebuying decisions. Factors such as proximity to a veterinarian and outdoor space for pets are important considerations for buyers with pets. Among all unmarried couples, 24% of home buyers considered their pet when deciding on a neighborhood in which to purchase, compared to 15% of married couples.  Source: NAR

A record 25.2 million adults under 35 lived with their parents in 2025, surpassing even the pandemic peak, as housing costs continue to price young adults out of independent living, according to a new Realtor.com® report. One in 3 adults under 35 now shares a roof with a parent, a rate that has held near its 2020 record high with little sign of easing. The numbers reflect the accumulated weight of more than a decade of housing underproduction, which has kept persistent upward pressure on housing costs. Had early-2000s co-residence patterns held, 4.86 million fewer young adults would be living with their parents today. The United States currently faces a deficit of approximately 4 million homes, a gap that has widened since the construction slowdown following the 2008 financial crisis. “The adults living with their parents today are largely employed, and many hold college degrees. What’s holding them back isn’t a lack of qualifications, but rather, at least in part, a lack of housing they can actually afford,” said Hannah Jones, Senior Economist at Realtor.com®. “This is a supply story, not an employment story.” The adults living with their parents in 2025 do not fit the stereotype. Among those aged 25 to 34, approximately 70% are employed. In 2000, roughly 1 in 9 adults in their late 20s were both employed and living at home; by 2025, that ratio had grown to nearly 1 in 7, even as employment rates within the group held steady. The divergence points directly at housing costs, not labor market conditions. Roughly 9 in 10 adults aged 25 to 34 living with parents have never been married, up from 79% in 2000.  “Twenty-five million adults living with their parents represent a generation of latent demand the market hasn’t absorbed,” said Jones. “Every adult still in a childhood bedroom is a household not formed, a lease unsigned, a starter home unpurchased.” Source: PR Newswire

The post July 14, 2026 – Getting The Story Strait appeared first on Starwest Mortgage Corporation.

The year 2026 has certainly been an eventful one and, believe it or not, we are only half-way through. Who knew that we would spend several months of our 250th anniversary year in a conflict over 6,000 miles away. That conflict had significant economic implications as prices for energy and other goods accelerated as shipping was interrupted for the duration of the conflict. This situation almost made us forget that we had plenty of economic uncertainty due to the on-again, off-again, on-again tariff debate.

And last week we received evidence of how the economy performed during the first half of the year in the form of the June jobs report.  During the month of June, the economy created 57,000 jobs.  In addition, the previous two months of jobs gains were revised downward by 74,000 jobs.  According to the Bureau of Labor Statistics (BLS), the economy has added just over 400,000 jobs during the past year, or an average of 36,000 jobs per month.  These numbers are subject to revision over the following two months.

The unemployment rate eased to 4.2% last month as the labor force participation rate fell and wages increased by 0.3% on a monthly basis. Wages also increased 3.5% year-over-year. Wage inflation is especially important at this juncture because of the recent increase in the inflation due to the aforementioned conflict.  When the Federal Reserve met a few weeks ago, there was plenty of speculation regarding possible interest rate increases during the second half of the year.  Hopefully as the effects of the conflict subside, the pressure will wane in this regard.  Overall, the jobs report was seen as a lukewarm report to end the first half of the year and may ease pressure on the Fed to raise rates in the coming months.

Weekly Interest Rate Overview

The Markets. Mortgage rates eased moderately in the past week as the markets continued to experience day-to-day volatility.  According to the Freddie Mac weekly survey, 30-year fixed rates fell to 6.43% last week from 6.49% the previous week. In addition, 15-year loans also decreased to 5.79%. A year ago, 30-year fixed rates averaged 6.67%, 0.24% higher than today. Attributed to Freddie Mac: “The 30-year fixed-rate mortgage eased slightly this week averaging 6.43%. With rates at a seven-week low and purchase demand continuing to edge higher, it’s an encouraging sign as prospective homebuyers respond to modest improvements in affordability.” Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Real Estate News

A recent NAHB analysis found that fewer older homeowners are choosing to transition out of their homes or downsize, a trend known as the “silver tsunami.” This shift is limiting the expected wave of housing stock released, affecting the availability of homes for new buyers. A majority (79%) of the members of the Boomer and Silent generation, U.S. adults 65 years or older, are homeowners and currently own more than a third (34%) of owner-occupied housing units in the U.S. “As older Americans stay in their homes longer, the silver tsunami phenomenon won’t solve the housing shortage on its own; therefore, expanding the housing supply becomes more urgent, not less,” said NAHB Chairman Bill Owens, a home builder and remodeler from Worthington, Ohio. “We must create pathways for all generations who aspire to achieve homeownership by reducing barriers to housing attainability.” An NAHB analysis found that the “silver tsunami,” which generally releases housing stock, varies sharply by region. Coastal metros and popular retirement areas have both high shares of older households and a lower number of young adult households. NAHB also found that older homeowners tend to live in some of the most supply-constrained markets.  Another complicating factor of the silver tsunami narrative is the age of the housing stock held by older homeowners. In the top 100 metro areas, markets with larger shares of older homeowners also tend to have older housing stock. These homes are unlikely to be direct substitutes for newer construction, as when they enter the market, many may require significant renovation and, in some cases, redevelopment.  Source: NAMB

When real estate agents around the country describe housing market conditions where they are, their stories are increasingly unique to their particular areas. It’s a big shift – a return to the “all real estate is local” reality that held true up until the subprime bubble of the early aughts made everyone followers of a national housing market narrative. “There is no national market anymore at all,” said Selma Hepp, chief economist for real estate data firm Cotality.  “It’s all about locality, right? It’s sort of slow and steady on the national level, but there’s a lot going on when you look under the hood.”  In a recent report, Hepp wrote that “the national trend hides a complex and increasingly fractured regional landscape.”  Toni Moss, founder of housing consultancy EuroCatalyst, was one of the early analysts who called the subprime bubble decades ago. Moss agrees that trends in globalization and housing are reverting from the national and international stage to the local. Buyers and investors will increasingly have to weigh not just local job markets or weather or amenities, but also how safe those areas may be from natural disasters and regional disruptions. As the federal government increasingly cedes disaster relief to states and localities, Moss thinks that the burden of managing risk is “incrementally moving local – to regional and statewide levels, and to city and community levels,” she told USA Today.   Source: USA Today

Only 30% of Americans know their neighbors beyond a casual level, according to a new Rocket survey. Despite this, Americans value the importance of strong community, with nearly 80% saying strong neighborhoods improve their quality of life. 50 years ago, neighborhoods were the center of belonging, culture and identity, with 80% of Americans saying they were once places where people naturally connected. Today, that dynamic has dramatically shifted, with hesitation emerging as the most prominent barrier to connection. Four in 10 (41%) say knocking on a neighbor’s door feels too bold, while 22% say they feel awkward making the first move. “We have tools at our fingertips that connect us with anyone on the planet, but we don’t know the person next door,” said Sarah Tarraf, Senior Vice President of Knowledge & Data Insights at Rocket. “At the heart of this paradox is something very basic. People want connection, but they fear being intrusive and being rejected. Americans are ready to be better neighbors. They just want someone to lead the way.” Only 17% of Americans say they intentionally seek out neighborly interactions, yet 68% report receiving support from a neighbor in the past year. The data suggests that while people may not actively pursue connection, they still show up when it matters – 58% say they would turn to a neighbor in an emergency, and 65% feel comfortable offering help. Nearly 42% of Americans say people in their neighborhoods tend to keep to themselves. Part of that shift may be tied to the decline of traditional “third spaces” – neighborhood spots like restaurants, parks and libraries where connection once happened naturally.  Source: MP Daily

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