Housing

Mortgage applications declined by 2.2% during the week ending July 3, primarily due to a 4% drop in refinancing activity, as interest rates for 30-year fixed-rate mortgages remained above the 6% threshold. The Mortgage Bankers Association (MBA) reported that the Market Composite Index, which measures total mortgage loan application volume, saw this decrease on a seasonally adjusted basis. Chief economist Mike Fratantoni noted that the 30-year fixed rate slightly increased to 6.58% for the week. While government purchase volume saw a modest increase, particularly a 5% gain in VA purchase applications, conventional purchase activity experienced a decline, leading to a 1% decrease in the Purchase Index, a key indicator for home sales. Refinancing applications showed little incentive for homeowners to act with rates still elevated. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances rose marginally from 6.57% to 6.58%, according to MBA calculations. In contrast, Freddie Mac reported average 30-year rates at 6.43% for the week ending July 2, a slight decrease from 6.49% the previous week. This period has seen rates consistently above 6% since February, influenced by economic uncertainty stemming from the conflict in the Middle East and its impact on oil prices and inflation fears. Despite the cooling effect of economic uncertainty on borrowing, the spring housing market has demonstrated resilience. The share of Federal Housing Administration applications decreased to 16.4% from 16.9% in the prior week. Conversely, the Veterans Affairs share of total loan applications saw a slight uptick, moving from 12.9% to 13% during the same period. This mixed performance in purchase applications, alongside the significant dip in refinancing, highlights the current sensitivity of the mortgage market to interest rate levels and broader economic conditions.

Frank Cassidy, former Federal Housing Administration (FHA) Commissioner, has returned to Walker & Dunlop as a senior managing director. This move follows his recent resignation from the FHA, where he also served as assistant secretary for housing at the U.S. Department of Housing and Urban Development (HUD). At Walker & Dunlop, Cassidy will focus on advising clients on FHA and government-sponsored enterprise (GSE) financing strategies, assisting owners, developers, lenders, and investors in navigating federal housing policy and capital markets. Cassidy joined HUD in April 2025, overseeing the agency's housing programs and managing the FHA's substantial mortgage insurance portfolio, valued at approximately $2 trillion. This portfolio encompasses single-family, multifamily, and health care loans, supporting over 8 million homeowners, around 1.5 million renters, and nearly 4,000 health care facilities. During his leadership, the FHA implemented several key policy changes, including a reduction in multifamily mortgage insurance premiums to 25 basis points, the elimination of the Green Mortgage Insurance Premium category and its associated reporting, and the simplification of multifamily mortgage insurance programs. Further initiatives under Cassidy's direction included the launch of the Section 232 Express Lane to streamline financing applications for residential health care facilities. He also oversaw the modernization of the FHA's single-family loss-mitigation waterfall and HUD's adoption of the VantageScore 4.0 and FICO 10T credit-scoring models. Additionally, Cassidy managed HUD's Multifamily Assisted Housing Portfolio, which serves more than 1.2 million low-income residents, alongside the agency's housing counseling program and manufactured housing construction standards. Cassidy stated that his time at HUD provided an opportunity to influence housing policy during a significant period for the nation.

Mortgage applications saw a 2.2% decrease from the previous week, according to data from the Mortgage Bankers Association (MBA) for the week ending July 3. This figure incorporates an adjustment for the Fourth of July holiday. On an unadjusted basis, the index experienced a 12% decline compared to the prior week. The adjusted refinance index dropped by 4% week-over-week, though it remains 8% higher than the same week in the previous year. The seasonally adjusted purchase index also decreased by 1% from the previous week. Mike Fratantoni, MBA's senior vice president and chief economist, stated that mortgage application volume was largely unchanged during the week of the nation's 250th Independence Day celebration, with the 30-year fixed rate seeing a minor increase to 6.58%. Following holiday adjustments, government purchase volume saw a modest increase, driven by a 5% rise in VA purchase applications, while conventional purchase activity declined. Refinance application volume decreased by 4%, as elevated interest rates offered little incentive for homeowners to refinance. The refinance share of total mortgage activity fell to 40.6% from 41.4% the week prior. Conversely, the adjustable-rate mortgage (ARM) share of activity rose to 7.8% of total applications. Examining specific loan products, the Federal Housing Administration (FHA) share of total applications decreased to 16.4% from 16.9% a week earlier. The U.S. Department of Veterans Affairs (VA) share increased to 13%, up from 12.9%, and the U.S. Department of Agriculture (USDA) share also saw an increase to 0.5%, up from 0.4%. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, capped at $832,750 or less, edged up to 6.58% from 6.57%. In contrast, the average rate for 30-year fixed mortgages with jumbo loan balances decreased to 6.50%.

The 2026 Housing Mismatch Report, a joint analysis by Realtor.com® and the National Association of Realtors®, reveals a substantial gap between available housing stock and what middle-income households can afford nationally. Buyers earning approximately $75,000 can afford homes up to about $261,140, yet properties priced below this threshold constitute only 23% of national listings, compared to 44% in a balanced market. This deficit translates to an estimated shortage of 311,000 listings accessible to these buyers. The report highlights that 36% of metropolitan areas exhibit a "Listing-Income Alignment Score" below 70%, indicating a critical lack of affordable options for lower- and middle-income households. Sacramento, California, is identified as a metropolitan area experiencing a particularly acute housing shortage for middle-income earners. In March 2026, a mere 4.30% of Sacramento's housing listings were within the affordable range for this demographic. While this represents a slight improvement from the 3% recorded in March 2025, the market still requires an estimated 2,266 additional affordable listings to meet the demand from middle-income buyers. This situation underscores the challenges faced by a significant portion of the population in achieving homeownership. The report introduces the Listing-Income Alignment Score as a novel metric to reframe the discussion around housing affordability. This score measures the congruence between the distribution of home listings and the income levels of potential buyers. A higher score signifies a market where the available homes are better aligned with the purchasing power of its residents. The analysis suggests that a lack of new construction and a high demand for existing homes contribute to the current affordability crisis, impacting various income brackets, but most severely affecting those in the middle-income range.

Reggora announced this week that its Reggora Forms software has received verification from Fannie Mae and Freddie Mac for the Uniform Appraisal Dataset (UAD) 3.6 specification. This verification allows the platform to be used during the government-sponsored enterprises’ Broad Production Period, which began on January 26, 2024, providing a transition period before the mandatory compliance deadline. Beginning November 2, 2024, all appraisal reports submitted to Fannie Mae and Freddie Mac must adhere to the UAD 3.6 standard, which replaces legacy appraisal forms with the new Uniform Residential Appraisal Report built on MISMO v3.6 standards. Reggora's browser-based platform is designed to support both the new UAD 3.6 format and existing UAD 2.6 forms, including General Purpose reports. This integration aims to streamline the appraisal process, enabling appraisers to complete various appraisal types from a single application. Brian Zitin, CEO of Reggora, stated that appraisers previously had to use multiple applications for a single report, leading to time loss, context switching, and increased costs. The Reggora platform integrates access to Multiple Listing Service (MLS) data, public records, comparable property research, market condition analytics, cost approach calculations, and automated time adjustments based on Federal Housing Finance Agency home price index data. Harrison Kennedy, product manager for Reggora Forms, emphasized the importance of a gradual transition, noting that a "clean break on November 2 is not a real transition plan." He highlighted that appraisers require months of practice with new workflows to make them habitual and should not incur additional costs for secondary software to facilitate this transition. The platform's design aims to provide a comprehensive solution within one application, offering side-by-side support for both UAD 2.6 and UAD 3.6 appraisal reports, thereby enhancing efficiency and accuracy for appraisers.

Actor Josh Duhamel has accepted a contingent offer on his Los Angeles home, listed for $2.99 million on June 25. Property records indicate the sale is progressing less than two weeks after it was put on the market. Duhamel, 53, purchased the four-bedroom, 3.5-bathroom ranch-style property in Encino for $2.65 million in 2017, suggesting a potential profit if the full asking price is achieved. The sale aligns with Duhamel's stated desire to spend more time at his off-grid cabin in Minnesota, which he refers to as a "doomsday prepper" retreat. He and his wife, Audra Mari, have been increasingly spending time in Fargo, North Dakota, Mari's hometown, where they also own a residence. Duhamel and Mari recently welcomed their second child, a daughter named Rocca. The actor has previously expressed an enjoyment in balancing his life between the rugged cabin and other residences, though it remains unclear if he plans to maintain a base in California after the Encino sale. The property was listed with Thomas Atamian of Coldwell Banker Realty. Duhamel is known for his role in "Ransom Canyon."

Joseph and Kendra Duggar have reduced the asking price of their Arkansas home by $8,000, approximately three weeks after Joseph pleaded not guilty to sex crime charges in Florida. He is scheduled to stand trial in the coming weeks for allegations of molesting a 9-year-old girl during a family trip in 2020. Joseph, 31, entered his plea in March and is expected to appear for a pretrial hearing on July 14. He was arrested on March 18 in Arkansas and extradited to Florida. Following Joseph's arrest, his wife, Kendra, 27, was also taken into custody and charged with false imprisonment and endangering the welfare of a child. Sources indicated to People that these accusations stemmed from a "home inspection." While Joseph faces charges in Florida, the child endangerment case is noted as unrelated to the Florida accusations. Kendra has since secured her release and posted the $60,000 bond for her husband's freedom. Reports at the time suggested that Kendra had converted the family's home into a rental property and sold personal belongings to raise funds for the bond. The couple shares four children. Joseph Duggar is the younger brother of Josh Duggar, who is a convicted sex offender. The price reduction on their Arkansas property comes as the couple faces significant legal challenges.

Home prices are now projected to increase by 1.2% through the end of 2026, a downward revision from Realtor.com's earlier forecast of 2.2% growth. This updated prediction comes from the Realtor.com economic research team's midyear update released on Wednesday, offering potential relief to prospective homebuyers struggling with affordability. For context, national home prices saw a 2% increase in 2025. The revised forecast attributes the slower price growth to observed trends of softer sales and asking prices throughout the current year. Although inventory growth has moderated, the ongoing increase in the number of homes available for sale is contributing to a dampening effect on price momentum, according to Realtor.com Chief Economist Danielle Hale. This projected slower price appreciation, which trails the anticipated 3.4% inflation rate for the year, is expected to provide a modest real-dollar advantage to buyers. Hale noted that this adjustment is "much needed" and begins to improve affordability, especially when combined with lower mortgage rates compared to the previous year and rising incomes. The forecast anticipates that mortgage rates will average 6.3% for the remainder of 2026, consistent with the initial December forecast. While this rate is a slight improvement from the 2025 full-year average of 6.6%, it remains significantly higher than the 2013–2019 average of 4%. Forecasters expect the median U.S. household income to grow by 3.9% in 2026, surpassing the initial prediction of 3.6%, supported by stable hiring and unemployment figures. These economic factors, coupled with the moderated home price growth, are anticipated to substantially enhance affordability for home shoppers during the fall and winter months. Consequently, the typical monthly mortgage payment for a median-priced home is projected to decrease by 1.9% compared to the previous year. Hale described these developments as a positive shift for buyers facing persistent affordability challenges.

The Frisco-Bagley Mill and Tunnel, a historic gold and silver mining structure built in 1912 near the Colorado ghost town of Animas Forks, has been relisted for $325,000 as of June 29. This price represents a reduction from its original listing of $375,000 in 2024. The property, situated on nearly 31 acres, is listed on the National Register of Historic Places and includes an "livable" off-grid cabin constructed in 1999. The cabin, spanning 300 square feet, is equipped with a spring-fed sink, solar-powered appliances, and propane and kerosene heating systems. The listing notes the property's eligibility for grants and tax incentives related to historic preservation, mining reclamation, and economic development. Investment in the mill's past included figures like Franklin Rockefeller and N.R. Bagley. The property is located in Silverton, CO, along the Alpine Loop. Other notable properties attracting attention this week include a "Gone with the Wind" themed party house in Tennessee, a Georgia property with underground survival shelters, and a Washington lakefront cabin with a vintage trailer.