Market snapshot · Aug. 12, 2026 close
The American FilingSection
Mortgages, housing supply and commercial property
The 30-year average declined for a second straight week even as the 30-year Treasury yield touched its highest level since 2007 — a divergence that says more about spreads than about relief.
Builders broke ground at an annual rate of 1.24 million units, down 13.5% from a year earlier, while authorizations for future projects climbed 5% — a split that says builders are keeping options open.
The one-point improvement in August leaves sentiment in the longest stretch of pessimism since 2012, with affordability rather than demand named as the binding constraint.
The affordability gains that appeared briefly in February have been erased, and the two fastest-growing costs of ownership — insurance and taxes — are not affected by mortgage rates at all.
The 30-year fixed rate averaged about 6.67% in mid-August, well above the 5.98% low reached in February, as sticky inflation and a rising term premium undo the year's affordability gains.
States and cities have spent three years legalizing denser housing, but starts have fallen to the weakest pace since 2020 — because permission is not the binding constraint when the math does not work.
Residential policies at the state's FAIR Plan have risen roughly 151% since 2022 as private carriers retreat, though new enrollment slowed sharply in the first quarter.
About 37% of homebuilders reported cutting prices in July, by an average of 6%, and roughly two-thirds are offering incentives — most often a subsidized mortgage rate that beats anything a resale buyer can get.