The Fed meets Wednesday. Inventory Climbs. Rates Ease Slightly.

October 26, 2026 | Kevin Brierton Team | , ,

FOR THE WEEK OF October 26, 2026

QUOTE OF THE WEEK

“Well done is better than well said.” — Benjamin Franklin, American polymath, Founding Father of the United States

NATIONAL MARKET UPDATE

Active inventory jumped 7.7% year over year, its fastest growth since January. Unsold homes continue accumulating as buyer activity slows, giving motivated buyers more options heading into November.

A record 2,833 homeownership assistance programs are now available nationwide. These programs could help qualified buyers overcome upfront cost barriers and explore purchasing opportunities they considered out of reach.

Homebuilders are increasing price cuts as confidence reaches a 14-year low. Buyers considering new construction may find opportunities to negotiate pricing or incentives as builders work to attract demand.

Sources: Realtor.com, MBA Newslink, Scotsman Guide

REVIEW OF LAST WEEK

BONDS CATCH A BREAK…Treasury yields fell as investors moved away from technology stocks and toward safer investments. The 10-year Treasury yield slipped below 5%, potentially easing some pressure on mortgage rates after weeks of increases.

Technology shares continued struggling as concerns grew over AI spending and corporate borrowing. Semiconductor stocks declined sharply, while utilities, healthcare and consumer staples held up better, preventing a broader market sell-off.

Oil prices climbed nearly 4%, adding another challenge to the inflation outlook. Still, business activity and corporate earnings remain relatively strong, suggesting the broader economy continues showing resilience.

The week ended with the Dow up 0.4%, to 52,215; the S&P 500 down 0.5%, to 7,624; and the Nasdaq down 0.7%, to 25,955.

Mortgage rates finally moved lower after seven consecutive weeks of increases. Freddie Mac’s 30-year average eased from 7.40% to 7.32%, offering modest relief for buyers, although financing costs remain challenging.

DID YOU KNOW…Median asking prices have declined year over year for 40 consecutive weeks. The typical listing is now $415,000, down 2.1% from last year, giving buyers more room to compare prices and negotiate.

THIS WEEK’S FORECAST

THE FED DECIDES…Wednesday’s Federal Reserve meeting takes center stage as policymakers weigh stubborn inflation against signs of cooling demand. Markets largely expect rates to remain unchanged, but the Fed’s comments could influence Treasury yields and mortgage pricing. Friday brings two important economic reports: third-quarter GDP and the Fed’s preferred inflation gauge, the PCE index. Strong growth or persistent inflation could complicate hopes for lower borrowing costs. For Realtors, a steadier rate environment could help hesitant buyers regain confidence before the holiday slowdown.

FEDERAL RESERVE WATCH

Forecasting Federal Reserve policy changes in coming months. The Fed is widely expected to hold its benchmark rate steady at the October 28 meeting. Note: In the lower chart, the 9.4% probability of change means there’s a 90.6% probability the rate will stay the same. Current rate is 3.75%-4.00%. Fed Watch Source

AFTER FOMC MEETING ON: CONSENSUS Oct 28 3.75%-4.00% Dec 9 4.00%-4.25% Jan 27 4.00%-4.25%

Probability of change from current policy:

AFTER FOMC MEETING ON: CONSENSUS Oct 28 9.4% Dec 9 73.8% Jan 27 53.6%

BUSINESS TIP OF THE WEEK

Turn assistance programs into buyer conversations. Ask your lending partner which down payment assistance programs are available locally and who qualifies. Sharing one relevant option with a hesitant buyer can be more valuable than another generic market update.

Ready to Plan Your Next Move?

Markets move every week. Your plan shouldn’t change with every headline.

With inventory rising, prices softening and rates still bouncing around, there’s real opportunity for prepared buyers. There’s also a lot of noise. That’s what a Mortgage Strategy Call is for.

In about 20 minutes, we’ll:

  • Look at where the market and rates stand today
  • Pinpoint your true buying power and monthly payment
  • Check which assistance programs you may qualify for
  • Review refinance options if you already own
  • Map out the timing that fits your goals

No pressure and no jargon, just a clear plan.

Schedule Your Mortgage Strategy Call

Your No Excuse Lender,

Kevin Brierton, Branch Manager NMLS #599873