Housing market faces headwinds as mortgage rates move above 7%
Mortgage spreads continue to soften the blow amid Iran conflict
Mortgage Rates
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Housing year-over-year comps need context for the rest of 2026
Last week’s data was really impacted by comparisons to Labor Day weekend in 2025
Trump threatens trade halt if Fed does not cut rates
President urged the Federal Reserve to cut rates after August payrolls rose by 162K and unemployment held at 4.1%
How long can mortgage rates stay below 7%?
Rates are already at yearly highs and 3 key factors are in play this week
Housing demand has slowed, but still stable for now
New listings data is still positive year-over-year
What can the government do to lower mortgage rates?
They have levers to pull, but not before some issues get resolved
Inventory edges slightly higher year over year as rates rise
Inventory rose to 871,063 in mid-August as rates stayed near highs, while pending sales fell year over year and price cuts hit 41.67%.
Mortgage spreads keeping housing demand intact for now
Mortgage spreads at 2.01% are keeping 2026 mortgage rates near 6.74%, supporting pending sales and limiting year-over-year declines.
The housing market defies expectations even with higher rates
Last week, as the 10-year yield hit 4.74%, weekly pending sales rose to 69,109 and while inventory increased to 872,932.
Real estate brokers say rising mortgage rates derail early 2026 housing rebound
Mortgage rates rose from 6.23% to 6.94% after Iran conflict escalation, and brokers now expect about 4 million home sales in 2026.