➤ Key Highlights
Housing demand is at a four-year high with steady mortgage rates and improved purchase application data.
Inventory growth has dropped from 33% to 13.6% as the market heads into 2026.
Mortgage purchase application data has shown positive week-to-week and year-over-year growth data together for the last 19 weeks.
Last week, there was 19% year-over-year growth and purchase apps at multiyear highs.
There have been 45 straight weeks of positive year-over-year data in purchase applications.
Last week, total weekly pending home sales hit a four-year high in demand.
Mortgage rates ranged between 6.36% and 6.32% last week, per Mortgage News Daily.
Housing demand reached a four-year high, supported by stable mortgage rates and increased purchase application activity. Pending home sales and purchase applications have shown consistent positive growth over the past year. Inventory growth has slowed as the market approaches 2026.
The event highlights persistent upward momentum in demand dynamics amid shifting financial conditions. This suggests that consumer appetite for housing remains strong even as borrowing environments and lending criteria evolve. The sustained activity reflects a market that is responsive to both macroeconomic shifts and micro-level borrower sentiment. Observing these demand dynamics provides insight into the resilience of consumer interest despite broader recalibrations in financial conditions.
⚠️ Why it matters now
For CRE360’s audience, understanding ongoing demand momentum is crucial for planning, underwriting, and capital allocation. The lens on demand dynamics emphasizes the importance of monitoring consumer sentiment and its ability to drive activity despite changing mortgage and lending landscapes. This perspective helps inform decision-making in development, investment, and policy as market participants respond to evolving borrower behavior.
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➤ TAKEAWAY
Stakeholders may continue to observe how demand dynamics evolve as financial conditions shift further into 2026. Monitoring borrower sentiment and its impact on activity could remain a key focus. The ongoing tracking of these patterns will help clarify future market trajectories as consumer outlooks and lending environments continue to adjust.
