From cooling inflation and housing policy changes to red-hot local markets, last month brought plenty of news that could impact buyers, sellers, and homeowners. Here's a look at the key economic trends, housing market updates, and regional highlights shaping real estate across the country.
Buyers are gaining leverage, with more negotiating power in 41 of the 50 largest U.S. markets and 20% of listings cutting prices.
Inflation eased to 3.4% in July, lowering the odds of a September Fed rate hike to 42%.
Housing activity is picking up, with home sales up 6.1% year-over-year as buyers adapt to mortgage rates in the 6% range.
U.S. employers cut 23,000 jobs in July, marking the second straight month of weaker-than-expected payroll growth.
The unemployment rate dipped to 4.1%, though labor force participation also fell, suggesting underlying labor market weakness.
Consumers may see higher prices on everyday goods as the Strait of Hormuz remains disrupted, with crude oil prices recently climbing to nearly $82 per barrel.
Consumers may see higher prices on everyday goods as the Strait of Hormuz remains disrupted, with crude oil prices recently climbing to nearly $82 per barrel.
Millennials now match baby boomers in planned down payments, with both groups expecting to put down a median of $65,000, compared to $56,250 for Gen X buyers.
The typical U.S. home buyer plans a $55,000 down payment, but buyers in top California markets often need more than triple that amount to compete.
Foreign buyers purchased about 67,000 U.S. homes between April 2025 and March 2026, down 14% year-over-year.
The U.S. housing market is showing renewed momentum, with inventory up, home sales rising 6.1% year-over-year, and prices holding steady as buyers and sellers adapt to mortgage rates in the 6-7% range and the second-lowest level since NAR began tracking the data in 2009.
Second-home mortgage originations rose 4.1% in 2025, outpacing the primary-home market, with affluent Gen X buyers driving demand, though vacation-home lending remains 65% below its 2021 pandemic peak.
Home buyer assistance programs reached a record 2,746 nationwide in Q2 2026, with growing grant funding and expanded eligibility helping more buyers overcome affordability and down payment challenges.
Buyers now have greater negotiating leverage in 41 of the 50 largest U.S. housing markets, with increased price cuts and longer listing times creating opportunities for concessions such as seller-paid closing costs and mortgage rate buydowns.
Housing policy, technology, and affordability are all shaping how homes are being built and bought right now.
What’s Happening Across the Country
While national trends are shifting toward balance, local markets continue to move at their own pace. Here’s a concise look at what stands out by region.
Buyers in the Boston metro are budgeting a median $101,250 down payment, nearly double the national median of $55,000.
Buyers in the Boston metro are budgeting a median $101,250 down payment, nearly double the national median of $55,000.
Charleston, WV, was named the nation's top up-and-coming housing market for 2026, with an average home value of just $147,264 and a home price-to-income ratio of 2.39.
As concerns over noise and quality of life grow, Delaware’s Kent County has adopted its first data center regulations, requiring noise studies, minimum setbacks, and buffer zones near residential areas.
Hartford, CT, median list prices increased 5.7% year-over-year in July, one of the strongest gains among major metros.
Peabody, MA, ranked as the hottest ZIP code in the Northeast, with homes spending a median of just 20 days on the market and a median list price of $600,000.
Home buyers in San Jose are planning the nation's largest down payments at $190,000, followed by $170,000 in San Francisco and $115,000 in Los Angeles.
Three wildfires in Spokane County, Washington, have burned roughly 8,000 acres, destroyed more than 700 homes, forced the evacuation of nearly 65,000 residents, and are part of 15 major wildfires statewide that have scorched approximately 250,000 acres.
Los Angeles buyers are helping sustain San Diego’s housing market, using higher home equity and incomes to purchase properties in the region, which local agents say is helping keep prices elevated despite limited inventory and historically low sales.
Spokane was named Washington's hottest ZIP code of 2026, with homes spending a median of just 40 days on the market.
Seattle's housing market is becoming more buyer-friendly, with active listings up 14.2% year-over-year and median sale prices down 1.8% as buyers gain more negotiating power.
Be sure to check back next month for our updated insights and trends to keep you informed on the latest developments. In the meantime, if you’re thinking about buying, selling, or refinancing, our Home Loan Specialists are always ready to help you make the right move.
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