Tuesday, September 1, 2026
— Andy Piper, Piper Partners
The Pulse
Mortgage Rates Ended August at 6.66%—and Buyers Are Feeling It
Freddie Mac’s Primary Mortgage Market Survey put the 30-year fixed rate at 6.66% for the week ending August 27, essentially unchanged from the week before and about 10 basis points higher than a year ago. Rates peaked at 6.69% in early August—the highest level in over a year—before easing slightly. Redfin reported that the elevated rate environment pushed the median monthly housing payment up 1.7% year over year to $2,626 nationally. That’s real money, and it explains why many would-be buyers are still on the sidelines. The practical takeaway: even small rate moves matter to your monthly budget, so it’s worth shopping lenders and exploring rate buydowns rather than waiting for a dramatic drop that may not come soon.
More Homes Are Coming to Market, but Demand Is Pulling Back
Nationally, Realtor.com tracked active inventory up 3.2% year over year for the week ending August 8—the fastest annual pace since April—while new listings hit a four-month high in the four weeks ending August 23, according to Redfin. At the same time, pending home sales fell to their lowest level in six months. The result is a gradual shift in negotiating power: more choices for buyers, less urgency for sellers. Realtor.com also reported that national median asking prices fell roughly 2.5% year over year, the steepest annual decline in its data since 2017. Midwest markets, including our region, have historically seen stronger inventory growth than the national average—but local conditions vary, and what’s true nationally isn’t always true on a specific Ann Arbor street.
Sales Are Stable, Prices Are Still Rising—and Affordability Has Quietly Improved
NAR’s July existing-home sales report (released August 11) showed sales dipped 1.7% from June to a seasonally adjusted annual rate of 4.06 million, but were still 0.7% above July 2025. The median existing-home sale price rose 2.0% year over year to $434,100—the 37th consecutive month of annual price gains. The more encouraging number: NAR’s Housing Affordability Index improved to 103.3 in July, up from 98.3 a year earlier, as wage growth has outpaced home-price growth. NAR Chief Economist Lawrence Yun noted that “home sales have been remarkably stable, even amid the rising mortgage rate environment.” Stability isn’t excitement, but it does mean the market isn’t in freefall—and that’s useful context for anyone making a move this fall.
What does this market mean for your specific situation—whether you’re ready to move, just exploring, or trying to decide whether to wait?
Sources this issue: Freddie Mac Primary Mortgage Market Survey, Aug. 27, 2026 · Redfin Housing Market Update, Aug. 27, 2026 · Realtor.com Weekly Housing Trends, week ending Aug. 8, 2026 · NAR Existing-Home Sales Report, Aug. 11, 2026 (July 2026 data)
