08/24/2026
MARKET UPDATE FOR THE WEEK OF August 24, 2026
QUOTE OF THE WEEK
“The cure for boredom is curiosity. There is no cure for curiosity.” — Dorothy Parker, American poet, critic, and screenwriter
NATIONAL MARKET UPDATE
Active inventory climbed 3.6% from a year ago and reached its highest level since November 2019, giving buyers more choices heading into fall. Homes also matched or beat last year’s selling pace for a 12th straight week.
Listing prices fell 1.3% from a year ago to $424,500. Softer asking prices are giving buyers more negotiating room, while sellers appear to be adjusting more realistically to current market conditions.
Mortgage credit conditions remain fundamentally healthy, with consumers continuing to show solid payment discipline. That provides an encouraging foundation even as affordability and elevated mortgage rates remain hurdles.
REVIEW OF LAST WEEK
BONDS TAKE CENTER STAGE...Stocks pulled back as long-term Treasury yields climbed, increasing pressure on borrowing costs. The 30-year Treasury yield briefly reached its highest level since 2007, a reminder that elevated bond yields could keep mortgage rates higher and continue weighing on buyer affordability.
The biggest concern remained interest rates. Oil moved back above $85 amid Middle East uncertainty, while heavy government and corporate borrowing added upward pressure to long-term yields and renewed questions about inflation.
The economy continued to show resilience. Business activity reached its strongest reading since March 2022, consumer spending remained solid, and second-quarter corporate earnings continued to outperform expectations
The week ended with the Dow down 0.8%, to 53,277; the S&P 500 down 1.4%, to 7,674; and the Nasdaq down 2.1%, to 26,180.
Bond markets remained volatile as long-term Treasury yields moved higher. Higher yields kept pressure on mortgage rates, with inflation uncertainty, oil prices and increased debt supply all contributing to the move.
DID YOU KNOW...Homes for sale are approaching 1.2 million nationally—the most since late 2019—giving today’s buyers a selection of homes that hasn’t been available since before the pandemic.
THIS WEEK'S FORECAST
RATES, INFLATION, HOUSING...Markets will keep a close eye on bond yields, inflation signals, and fresh housing data this week. With long-term rates elevated, cooler price pressures could help ease mortgage rates, while continued economic strength could keep yields higher. For housing, growing inventory and softer asking prices are giving buyers more negotiating room heading into fall, and steadier borrowing costs could help bring more buyers off the sidelines.
FEDERAL RESERVE WATCH
Forecasting Federal Reserve policy changes in coming months. Inflation and employment data have eased expectations for more Fed tightening, but elevated bond yields remain the bigger challenge for mortgage rates. Note: In the lower chart, the 40.1% probability of change means there’s a 59.9% probability the rate will stay the same. Current rate is 3.50%-3.75%. Fed Watch Source
AFTER FOMC MEETING ON: CONSENSUS
Sep 16 3.50%-3.75%
Oct 28 3.75%-4.00%
Dec 9 3.75%-4.00%
Probability of change from current policy:
AFTER FOMC MEETING ON: CONSENSUS
Sep 16 40.1%
Oct 28 44.9%
Dec 9 45.1%
BUSINESS TIP OF THE WEEK
More inventory means more opportunity to reconnect. Instead of asking clients if they’re “ready to buy,” send them one property that fits what they once wanted. A useful reason to reach out beats a generic follow-up every time.
