FOR THE WEEK OF JULY 20, 2026

  “Price is what you pay, value is what your get.”—Warren Buffet, American businessman and philanthropist

New listings bounced back after the holiday week, rising 2.4% from a year ago. Active inventory remained above 1.1 million homes for the fourth straight week as homes continued selling at last year's pace.

First-time buyers accounted for nearly half of all purchase mortgages, according to Newrez, underscoring that homeownership remains a priority even as affordability challenges persist.

Markets paused after a strong first half as investors rotated out of semiconductor stocks and into other sectors. Focus now turns to second-quarter earnings, with technology companies expected to lead profit growth.

TECH TAKES BREATHER...Stocks pulled back last week as investors took profits in technology and semiconductor shares following a strong rally. Markets also entered the heart of earnings season with expectations running high for corporate results. 

Treasury yields remained relatively stable after softer-than-expected inflation data, reinforcing expectations that the Federal Reserve will leave interest rates unchanged at its July meeting. Mortgage rates, however, climbed to their highest level since August 2025.

Economic data painted a mixed picture. Housing starts jumped on strength in multifamily construction, while single-family construction slowed and pending home sales fell in June, reflecting affordability pressures across the housing market.

The week ended with the Dow down 0.9% to 52,146, the S&P 500 down 1.6% to 7,458, and the Nasdaq down 2.9% to 25,520.

Mortgage demand for newly built homes remained stronger than a year ago despite higher financing costs, suggesting buyers continue showing interest in new construction where builders offer incentives.

DID YOU KNOW...Price reductions topped 100,000 listings for the first time in 2026 following the July 4 holiday, although reductions remain below last year's levels.

EARNINGS TAKE CENTER STAGE...Second-quarter earnings season accelerates this week with reports from several major technology and consumer companies. Existing home sales, weekly jobless claims, and housing data will also be closely watched. Together, these reports should offer fresh insight into the health of the economy and housing market.

Forecasting Federal Reserve policy changes in coming months.The Federal Reserve is widely expected to leave interest rates unchanged when policymakers meet later this month. Recent inflation reports have been encouraging, while the labor market remains stable, giving officials additional time to evaluate incoming economic data before considering any policy changes. Note: In the lower chart, the 14.4% probability of change means there’s an 85.6% probability the rate will stay the same. Current rate is 3.50%-3.75%.

Probability of change from current policy:

Don't assume your past clients know you're available. A simple mid-year check-in call or personalized email keeps you top of mind and often uncovers referrals or financing needs that might otherwise go unnoticed.