August 2026

 

Welcome to this month’s Mortgage Market Moment.

Whenever I would approach my old boss, Bob, for advice on a big decision, he’d always offer a reality check: “There’s what’s right, there’s what’s wrong, and then there’s what is real.”

 

At the time, I thought it was just his way of reminding me not to overthink things, which I tend to do sometimes. Looking back, though, I’m pretty sure it was his polite way of telling me to focus my attention on what was actually happening – not all the noise – to make the best decision.

That advice seems especially appropriate in today’s real estate and mortgage market. We have more headlines, predictions, charts, podcasts, and “experts” telling us what the market will do next than ever before. Some days, the noise just gets too loud.  

 

So, let’s take a step back and look at what happened or what was real in the mortgage and real estate markets for August 2026.

 

Mortgage Rates: Still the Elephant in the Room

Let’s start with the question I keep hearing.  “When are mortgage rates going down?”

 

If I could predict that, I’d probably be doing something other than writing this newsletter! The reality is that rates remained elevated throughout the month of August. Freddie Mac reported the average 30-year fixed mortgage rate at 6.69% on August 6, its highest level of the year at that point. Rates then moved slightly lower before finishing at 6.66% on August 27.

In other words, we didn’t see the big rate drop many buyers were hoping for. And that’s important because even small changes in mortgage rates can affect purchasing power and monthly payments.

 

But here’s my bigger takeaway . . . I wouldn’t make your decision to buy a home based solely on whether the rate is 6.5%, 6.7% or 6.9%.

 

The real question should be, “Does this home and this payment make sense for me today?”

 

Buyers Finally Have a Little More Breathing Room

There is some good news for buyers. Inventory continues to improve. Realtor.com reported approximately 1.14 million active listings nationally in August, up 3.6% from a year ago. That’s the fastest year-over-year inventory growth recorded so far this year.

 

Now, before we celebrate too much, we’re still about 11% below typical pre-pandemic inventory levels. But compared with the housing market we’ve experienced over the last several years, buyers are seeing more choices. And more choices matter. More homes on the market can mean more opportunities to find the right home.

 

That doesn’t mean buyers suddenly have all the leverage. It simply means the market is continuing to become more balanced. And that’s a really good thing.

 

Sellers Are Starting to Get the Message

Here’s another interesting development from August. 20.4% of homes listed for sale had a price reduction during the month, matching the level from August 2025. Realtor.com also reported that median list prices were down 1.3% from a year ago.

 

Before I cause a panic, let me say that I don’t think that means we’re headed for a housing crash. What it tells me is that sellers are having to pay closer attention to what buyers are willing to pay.

 

For a long time, sellers could put a house on the market and expect buyers to compete for it. That isn’t necessarily today’s market. If you’re selling a home, pricing the home correctly from the beginning matters. Overpricing a home and planning to “come down later” may mean sitting on the market while other homes get attention.

 

The real deal is today’s buyers have more options… and they’re using them.

 

And Then There’s Home Sales

This part of the August housing story caught my attention. Pending home sales or homes that have an accepted purchase contract but haven’t closed yet fell 0.2% year over year in August. That ended an eight-month streak of year-over-year growth.

 

Why does that matter? Because pending sales give us a pretty good indication of what future closed sales may look like.

Are higher mortgage rates taking some of the enthusiasm out of the market? That could be a real possibility.

 

What About Home Prices?

Nationally, Realtor.com reported a median list price of $424,500 in August, down 1.3% from a year ago. It was the tenth consecutive month of year-over-year declines in median list prices. But don’t take that number and assume your local housing market is doing the same thing. Real estate is local. The housing market in Mississippi or Alabama or even in specific cities or towns can look very different from the housing market in Texas, Florida, or California.

 

Your local market is what’s real, and that should be your focus.

 

Should You Buy a Home Right Now?

If you were sitting across from me asking that question, my answer would probably be… Maybe. And I mean that in the best possible way.

 

I don’t think everyone should rush out and buy a house today. I also don’t think buyers should automatically sit on the sidelines waiting for mortgage rates to fall. That could be a poor, long-term decision as well. 

 

If you are financially ready, have a stable income, have the funds you need for the transaction, and find a home that fits your budget and your long-term plans, then today’s market may actually offer some advantages that buyers didn’t have a couple of years ago.

 

The key is making sure the total monthly payment works for you and not trying to perfectly time the market.

 

What I’m Watching Now

  • Buyer confidence – Are people becoming more comfortable with today’s payments?
  • Inventory – Are we continuing to see more homes come onto the market?
  • Seller behavior – Are sellers negotiating or continuing to hold firm on yesterday’s prices?
  • Affordability – This may be the biggest one. Because ultimately, the housing market doesn’t run on interest rates. It runs on what people can afford.

And that is where the real conversation needs to stay.

 

One More Thing: Don’t Let the Internet Buy Your House

This may be my favorite piece of advice. The internet is great at giving you information. It is terrible at knowing you.

A headline doesn’t know your income. A housing-market statistic doesn’t know your family. A mortgage-rate forecast doesn’t know your plans. And a social media post telling you to “BUY NOW” or “WAIT” certainly doesn’t know your financial situation.

 

Your home purchase should be based on your numbers, your goals, and your timeline. A local mortgage lender can be more helpful in figuring that out than social media, the internet, or even a chatbot.

 

Focus On What’s Real    

So, as we head into September, I’ll remind you of my old boss’ advice about focusing on what is real.

 

What’s real is that mortgage rates are still higher than many people would like. What’s also real is that buyers have more choices, sellers are having to adjust, and opportunities still exist for people who are financially prepared and willing to make decisions based on their own circumstances.

 

The market doesn’t need to be perfect for you to make a good decision. It just needs to make sense for you.

 

And if you ever want to have a real conversation about the market and financing a home – without the headlines or hype – myself or anyone on the Canvas Mortgage Team would be happy to help.

 

August Market Snapshot

30-Year Mortgage Rate: 6.66% at month-end
August 2026 Median List Price: $424,500
Annual Change in Median List Price: -1.3%
Active Listings: Approximately 1.14 million
Annual Inventory Change: +3.6%
Listings With Price Cuts: 20.4%
Pending Sales: -0.2% year over year

 

Sources: Freddie Mac, Realtor.com, National Association of REALTORS®. Market data is national and may vary significantly by local market.

 

Disclosures: We are an Equal Housing Lender. NMLS # 635768. Rates are national averages and move daily; your rate will vary based on credit, loan type, occupancy, down payment, lock period, and market conditions. This is not a commitment to lend. All information is believed to be reliable but not guaranteed; please verify key figures that affect your decision. Always consult a financial advisor or lender before making major financial decisions.