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  • Why aren’t high mortgage rates pushing prices down?

Why aren’t high mortgage rates pushing prices down?

Plus: office’s one clear winner, where CRE lenders are returning, and the AI tools changing underwriting.

ZERO FLUX12 AUG 2026 / 5 MIN
TODAY'S MAIN SIGNALS
1High mortgage rates still are not pushing home prices down. Prices rose in 80% of tracked metros, showing that limited supply remains stronger than affordability pressure.
2The office recovery is splitting in two. Suburban offices are gaining value, while downtown properties remain deeply discounted. Buying something simply because it looks cheap remains risky.
3Capital is returning to CRE, but lenders are becoming more selective. The opportunity depends on finding the property types and borrowers they are willing to finance.
RATES
30-YR FIXED
6.74%
CHANGE FROM PRIOR IN BIPS
1D -5   1W -1   1M -1   1Y +16
10-YR UST
4.670%
CHANGE FROM PRIOR IN BIPS
1D -3   1W -2   1M +9   1Y +43
SOFR
3.64%
CHANGE FROM PRIOR IN BIPS
1D +1   1W -2   1M +9   1Y -70
MARKET SIGNALSFREE
COMMERCIALINDUSTRIALLINK
The office market has one clear winner - and it isn't downtown
-Suburban office values rose 3% year over year in June, the strongest gain among major property types and a clear contrast with downtown office.
-Downtown office values rose 1.2% but remain about 50% below their July 2022 peak. The deep discount is still a warning, not an automatic value opportunity.
RESIDENTIALMULTI-FAMILYLINK
Why rent growth in this asset class may stay weak into the 2030s
-Excess multifamily supply could hold rent growth to 1.4% in 2026, well below the typical 3.5% pace. Yardi Matrix does not expect a return to that pace until the early 2030s.
-Overbuilt markets could see flat or negative rent growth through about 2027. Yardi projects a rebound around 2028 as the extra supply is absorbed.
COMMERCIALHEALTHCARELINK
The CRE sectors lenders are returning to - and the ones still being left behind
-Retail and office led the lending return, with second-quarter originations up 61% and 47% from a year earlier.
-Healthcare and hotels were left behind, with originations down 50% and 36% from the first quarter. The divide means lender selection and deal structure matter more than the 16% overall annual gain suggests.
RESIDENTIALLINK
Which U.S. cities are leading the home-price rebound?
-Beaumont, TX, leads the home-price rebound with an 11% annual gain, followed by Naples, FL, at 10.5% and Gulfport, MS, at 10.3%.
-The rebound broadened despite elevated mortgage rates. Prices rose in 80% of tracked metros, up from 71% in the first quarter.
RESIDENTIALLINK
Which 10 ZIP codes are drawing the most homebuyer demand in 2026?
-Peabody, MA, ZIP code 01960 draws the most demand, with 4.09 times the average listing views. Montclair, NJ, 07042 ranks second, followed by Sewell, NJ, 08080.
-All 10 ZIP codes are in the Northeast or Midwest, where inventory remains 60.5% below pre-pandemic levels. Limited supply is sharpening competition, so affordability alone does not explain the demand.
RESIDENTIALLINK
Congress moves to double a home-sale tax break - and potentially unlock more listings
-A proposal backed by 151 House supporters and 23 Senate supporters would double the home-sale capital gains tax exclusion to $500,000 for single filers and $1 million for joint filers.
-NAR estimates nearly 13 million homeowners could face the tax under current rules. Raising the exclusion could remove a barrier for some longtime owners, but any effect on listings remains uncertain.
THE AI LAYERAI + REAL ESTATE
A new conversational AI tool wants to bring institutional-grade underwriting to more real estate investorsLINK
-Diald turns a plain-English deal description into a pro forma and shows the assumptions behind it, which could give smaller CRE investors an underwriting workflow that normally requires more expensive tools. Its performance claims still come from a paid press release, so they need to be tested on real deals.
What AI-ready property data could automate for lendersLINK
-ATTOM says lenders can feed ownership, mortgage, valuation, and risk data into an AI copilot to speed up underwriting and portfolio monitoring, but it has not published results from a real lender deployment yet.
TOOLS TO KNOW
Diald   Diald uses conversational AI to turn commercial real estate deal descriptions into pro formas with transparent underwriting assumptions.
FUNDING ROUNDSPROPTECH
Home-battery startup BasePowerlanded $1B in Series D funding, with Ribbit leading the round.
German construction spatial-twin company NavVisbrought in $85M, with Kozo leading the round.
Colombian alternative-home-financing platform Dupplasecured $60M, with Skandia leading the round.
Construction-compliance startup Diliclosed $15M in Series A funding, with Khosla leading the round.
Indian building-materials marketplace Homerunlanded $12M in Series A+ funding, with Nexus leading the round.
AI site-monitoring startup SiteVuebrought in $7.5M in seed funding, with Penny Jar leading the round.
THE EDGEPREMIUM
COMMERCIALINDUSTRIALLINK
What changed for investors in a $5.1 trillion CRE market
-Industrial has overtaken office in the $5.1 trillion U.S. commercial real estate market, reversing their 2023 positions and reshaping institutional investment priorities.
-U.S. turnover reached 8.8% in 2025 as Americas transaction volume rose 26%, signaling that liquidity is returning and buyers can price assets more confidently.
COMMERCIALINDUSTRIALLINK
The shift that could improve industrial rents in 2027
-Fewer industrial completions could bring supply back in line with demand and support a rent recovery by late 2027, according to CoStar.
-The recovery is unlikely to be immediate. Vacancy is expected to remain in the mid-7% range into early 2027, with rent growth accelerating toward 2028.
UNREAL REAL ESTATE
This Ohio Office Is a Giant Basket
This Ohio Office Is a Giant Basket
Listed for $8.5 million in Newark, Ohio, this seven-story office building looks exactly like a giant woven Longaberger basket, complete with two 75-ton handles. LINK

 

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