Buyers Have More Leverage Than They’ve Had in Years — But This Week Could Change That
Inside Lending FOR THE WEEK OF August 31, 2026
QUOTE OF THE WEEK
“Success is the sum of small efforts, repeated day in and day out.” — Robert Collier, American author
NATIONAL MARKET UPDATE
Active inventory reached 1.14 million homes, its highest level since 2019, while the median asking price slipped to $420,000. Homes are selling slightly faster than last year, suggesting sellers who price realistically are still finding buyers.
Homebuyer affordability improved in July, with the median mortgage payment falling to $2,175. Consumer credit also remains healthy, with the average U.S. FICO score holding steady at 714.
Mortgage delinquencies eased again in July, with fewer new defaults and more borrowers getting back on track—a positive sign that homeowners are weathering today’s higher-cost environment.
REVIEW OF LAST WEEK
RATES STEAL SPOTLIGHT…Stocks ended the week higher, helped by corporate earnings and economic growth. Friday brought some caution as investors worried that stubborn inflation could keep interest rates elevated longer than hoped.
Bond yields moved higher Friday, putting renewed pressure on borrowing costs. For housing, the takeaway is simple: mortgage rates may have a harder time moving meaningfully lower until inflation shows more improvement.
Homebuyer payments declined in July, mortgage delinquencies improved, and consumer credit remained stable, suggesting households are holding up despite today’s higher costs.
The week ended with the Dow up 0.5%, to 53,560; the S&P 500 up 0.5%, to 7,712; and the Nasdaq up 0.8%, to 26,402.
More inventory and lower asking prices are giving buyers leverage, but higher mortgage rates continue to limit demand and keep many homeowners from making a move.
DID YOU KNOW…A record 60.1% of home-shopping traffic across the nation’s 100 largest metros is now directed toward homes outside the shopper’s current metro, up from 48.2% before the pandemic.
THIS WEEK’S FORECAST
JOBS TAKE CENTER STAGE…This week’s employment reports will give us a clearer picture of the economy and could have a direct impact on mortgage rates. Signs of slower hiring could help bring rates down, while stronger job growth could keep borrowing costs elevated. Friday’s August jobs report will be the biggest event to watch as we head toward the Fed’s September meeting.
FEDERAL RESERVE WATCH
Forecasting Federal Reserve policy changes in coming months. Warsh’s Jackson Hole speech changed the conversation heading into September. He reaffirmed the Fed’s 2% inflation target and left the door open to another rate increase if inflation doesn’t improve.Note: In the lower chart, the 66.1% probability of change means there’s a 33.9% probability the rate will stay the same. Current rate is 3.50%-3.75%. Fed Watch Source
AFTER FOMC MEETING ON: CONSENSUS
Sep 16th 3.75%-4.00%
Oct 28th 3.75%-4.00%
Dec 9th 3.75%-4.00%
Probability of change from current policy:
AFTER FOMC MEETING ON:CONSENSUS
Sep 16th 66.1%
Oct 28th 56.5%
Dec 9th 40.0%
BUSINESS TIP OF THE WEEK
Don’t confuse “not now” with “not interested.” Buyers who stepped back because of rates may still want the house, just not today’s payment. Keep them updated when prices change, inventory improves or financing options create a new opportunity—the follow-up is often where the next transaction begins.
Here’s the thing about weeks like this one — inventory is up, payments are easing, and a single jobs report could reshape where rates head next. That’s a lot of moving pieces, and I don’t expect you to track them all on your own. That’s my job.
If you’ve been sitting on the sidelines waiting for “the right time,” this might be closer than you think. Whether you’re weighing your buying power, wondering if now’s the moment to lock in a rate, or exploring whether a refinance finally makes sense, let’s get specific about your numbers instead of guessing from the headlines.
Schedule a Mortgage Strategy Call and let’s map out your next move together.
Text me on my personal cell at 480.553.8770
Kevin Brierton Branch Manager, SVP of Mortgage Lending Luminate Bank | “Your No Excuse Lender” Certified Mortgage Planning Specialist (CMPS) 6991 East Camelback Rd., Ste D-300, Scottsdale, AZ 85251 NMLS #599873 | Luminate Bank NMLS #1281698
