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  • More homes are for sale. So why aren’t buyers buying?

More homes are for sale. So why aren’t buyers buying?

Plus: where flipping returns are jumping, which markets are hardest to sell in, and why insurance is becoming the next affordability problem.

ZERO FLUX10 AUG 2026 / 5 MIN
TODAY'S MAIN SIGNALS
1The weak July jobs report makes another Fed rate hike less likely for now. Mortgage rates could get some relief, but a rate cut is still unlikely.
2More starter homes are for sale, but fewer are selling. High mortgage costs are holding back regular buyers while wealthier buyers keep buying luxury homes.
3Home insurance is getting more expensive and harder to keep. It is becoming another major affordability problem for buyers and homeowners.
RATES
30-YR FIXED
6.74%
CHANGE FROM PRIOR IN BIPS
1D -3   1W -9   1M +6   1Y +19
10-YR UST
4.659%
CHANGE FROM PRIOR IN BIPS
1D -3   1W -4   1M +10   1Y +39
SOFR
3.62%
CHANGE FROM PRIOR IN BIPS
1D -3   1W -4   1M +4   1Y -73
MARKET SIGNALSFREE
RESIDENTIALLINK
The July jobs shock could change the outlook for mortgage rates
-July payrolls fell by 23,000, while May and June were revised down by 103,000 combined. The weaker jobs picture eased the immediate risk of another Fed hike and some upward pressure on mortgage rates.
-FedWatch shifted from a 55% chance of a hike to a 54% chance of a hold. The data points to delayed hikes rather than cuts because inflation remains the bigger driver for the Fed and bond market.
RESIDENTIALLINK
Home insurance is outrunning inflation - and coverage is getting harder to keep
-Home insurance costs rose faster than inflation in every U.S. region from 2018 to 2024, while insurer-driven nonrenewals increased nationwide. The West had the sharpest premium increase at 43% after inflation.
-Higher insurance costs are reducing buying power. NAR estimates home affordability is 10% lower than if insurance costs had remained stable since the late 1990s.
REAL ESTATELINK
Seven of the 10 most expensive U.S. metros for raising a child are concentrated in one region
-The West holds seven of the 10 most expensive spots: San Francisco, San Jose, Seattle, Denver, San Diego, Sacramento, and Portland.
-San Francisco ranks first at $43,171 a year, followed by Boston at $42,584 and San Jose at $41,817. These are the only three metros where the annual cost exceeds $40,000.
RESIDENTIALLINK
Which U.S. cities are the hardest places to sell a home in 2026?
-Toledo, Augusta and Seattle rank as the hardest places to sell a home in 2026, giving buyers the most leverage.
-More inventory means tougher competition and longer timelines for sellers. Pricing above recent comparable sales can lead to months on the market or a later price cut.
THE EDGEPREMIUM
RESIDENTIALLINK
Which luxury neighborhoods rank hottest in 2026?
-Park Slope in Brooklyn, NY, ranks first, with a $1.78 million median sale price. Highland Park, IL, ranks second, followed by Overland Park, KS.
-The ranking measures buyer competition, not just price. Redfin used days on market, above-list sales and sale-to-list ratios, allowing these neighborhoods to outrank pricier enclaves.
RESIDENTIALLINK
The 10 U.S. metros where home-flipping ROI is rising fastest
-Spartanburg, SC, ranked first as gross flip ROI jumped 60.6 percentage points to 114.6%. Crestview-Fort Walton Beach-Destin, FL, ranked second, followed by Hickory-Lenoir-Morganton, NC.
-The gains were local rather than national. Typical flip ROI fell from 29.6% to 25.4%.
RESIDENTIALLINK
The housing market is splitting in two - even as inventory rises
-Starter-home inventory rose 4.5% in May, but sales fell 5.4%. More choice is not bringing buyers back because affordability remains the bigger obstacle.
-Luxury sales rose 6.2% as wealthier buyers benefited from stock gains and relied less on mortgages. With 30-year rates near 6.75%, financing costs are dividing housing demand.
COMMERCIALINDUSTRIALLINK
Which two CRE sectors are gaining momentum - and which two are facing new headwinds
-Office and retail are gaining momentum. Office vacancy fell nationally for the first time since 2019.
-Industrial and multifamily face new headwinds. Industrial absorption remains 30% below its pre-pandemic average.

 

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