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Starter-home affordability improves for 8th consecutive month
According to a new analysis from Redfin, starter-home affordability is improving. The income needed to afford an average U.S. starter home is down 1.5% from a year ago, marking eight straight months of declines as price growth cools. Affordability for entry-level homes is improving more than the overall market; the income needed to buy the typical U.S. home is down just 0.5% because price growth remains stronger at higher price points as affluent buyers remain active.
“We consider a home affordable if a buyer taking out a mortgage would spend no more than 30% of their income on their monthly housing payment. Starter homes are those in the 5th to 35th percentile for sale prices,” said Redfin in its analysis. “This is based on a Redfin analysis of median home sale prices, prevailing mortgage rates and property-tax payments and assumes a 15% down payment. This report focuses on June 2026, the most recent period for which data is available.”
The analysis found that the income needed to buy a starter home is declining while earnings are rising. The typical American household earns an estimated $87,599, about $17,000 more than what is needed to buy the median-priced U.S. starter home.
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Federal Reserve holds rates steady for fifth consecutive month
The Federal Reserve, during its July policy meeting, decided to hold interest rates at 3.5% to 3.75%. This comes amid elevated inflation rates, which were attributed to supply shocks. This is also the Fed’s fifth consecutive hold; the last rate cut was in December 2025.
“The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve’s dual mandate,” the Board said in a statement. “The Committee is continuing its policy of maintaining ample reserves in the banking system.”
This is Federal Reserve Chairman Kevin Warsh’s second decision of his tenure since he took the helm in May. The National Association of Home Builders Chief Economist, Robert Dietz, discussed what this means for builders.
“If you squint a little, this can be seen as a dovish policy message because, while the Fed can affect aggregate demand by tightening monetary policy (as the bond market appears to expect), the central bank cannot effectively address supply shocks with policy,” said Dietz. “While this should not be interpreted as taking rate hikes off the table, it is an accurate statement of current macroeconomic conditions and many analysts’ views that the Fed cannot solve energy price increases due to war or one-off tariff effects with monetary policy.
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New home sales edge higher
According to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, newly built single-family home sales rose 1.6% in June to a seasonally adjusted annual rate of 628,000.
“New home sales are gaining some momentum at the more affordable range of the market, with homes priced below $300,000 accounting for 23% of June sales, up from 16% a year earlier,” said the National Association of Home Builders (NAHB) Chief Economist Robert Dietz. “However, that price point is generally only achievable in markets with lower development and construction costs, particularly with respect to lower state and local regulatory costs.”
“The pace of new home sales has remained constrained in recent months by elevated mortgage rates,” said Bill Owens, chairman of the National Association of Home Builders (NAHB) and a home builder and remodeler from Worthington, Ohio. “Builders continue to use incentives to support sales, with NAHB survey data showing that 62% of builders offered some form of incentive in June.”
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Highland Homes purchases 100 acres for self development
Highland Homes, one of Texas’ most prominent builders, launches its self-development arm with the purchase of 100 acres in Melina. The builder estimates that the land will include 400 homesites ranging from 45 to 60 feet wide.
Highland, overseeing the development, believes the lots will be ready by the end of the year, with home sales to begin in spring 2027.
Highland Homes currently builds in 11 Austin-area communities and more than 100 in Texas. With these new avenues of self-development, the builder estimates delivering 600 homes in the near future to the Georgetown area.
“This is a natural next step for Highland Homes in Central Texas,” said Jeff Stinson, Senior Vice President of Land for Highland Homes. “Developing these projects allows us to time supply to properly meet buyer demand. We’re excited to work with such esteemed partners to bring these communities to life.”
Photo Courtesy of Highland Homes
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Mortgage rates average 6.69%
As of Aug. 6, 2026, mortgage rates averaged 6.69%, according to Freddie Mac’s Primary Mortgage Survey (PMS). These results are up from last week’s average of 6.66%. A year ago at this time, the 30-year FRM averaged 6.63%.
“The 30-year fixed-rate mortgage averaged 6.69% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “While mortgage rates continue to influence affordability, the housing market is showing signs of adjustment, with listing prices modestly below year-ago levels and for-sale inventory improving from the limited supply seen in recent years.”
The 15-year FRM averaged 6.01%, down from the previous week’s 6.04%. A year ago at this time, the 15-year FRM averaged 5.75%.
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Residential construction spending averages $877.1 billion in June
On Aug. 3, 2026, the United States Census Bureau released its Monthly Construction Spending in June 2026 report. According to the report, residential construction was at a seasonally adjusted annual rate of $877.1 billion in June, 0.3% (±1.3%)* below the revised May estimate of $879.9 billion.
Total construction spending during June 2026 was estimated at a seasonally adjusted annual rate of $2,166.5 billion, 0.1% (±0.8%)* below the revised May estimate of $2,168.5 billion. The June figure is 3.2% below the June 2025 estimate of $2,237.7 billion. During the first six months of this year, construction spending amounted to $1,046.9 billion, 3.5% below the $1,084.5 billion for the same period in 2025.
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Mortgage rates average 6.66%
On July 30, 2026, Freddie Mac released the latest results of its Primary Mortgage Market Survey, showing the 30-year fixed-rate mortgage (FRM) averaged 6.66%. This was up from the week prior’s average of 6.58%. A year ago at this time, the 30-year FRM averaged 6.72%.
“The 30-year fixed-rate mortgage averaged 6.66% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “The housing market continues to benefit from more available inventory, providing prospective homebuyers with additional options and helping support buyer activity as mortgage rates fluctuate.”
The 15-year FRM averaged 6.04%, up from the previous week when it averaged 5.96%. A year ago at this time, the 15-year FRM averaged 5.85%.
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Tri Pointe Homes unveils LivingWell in Utah
Tri Pointe Homes announced the completion of its LivingWell concept home and the start of sales at Pavilions at Holladay Hills, an exclusive collection of six one-of-a-kind luxury estate residences in Holladay, Utah. The completed concept home gives prospective buyers their first opportunity to experience LivingWell, Tri Pointe’s next-generation approach to whole-home wellness.

Photography by Kara Mercer “LivingWell represents an important evolution in how we think about designing homes,” said Tom Mitchell, President and Chief Operating Officer of Tri Pointe Homes. “Buyers increasingly want homes that contribute meaningfully to the lives they hope to lead. Luxury is no longer measured by scale or finishes alone, but by whether a home can adapt, restore and support the people living there. Pavilions at Holladay Hills is Tri Pointe’s response, offering residences that are highly personalized, flexible over time and holistically focused on human wellbeing.”
The LivingWell concept home integrates wellness throughout the entire home, rather than confining it to individual rooms or amenities. Organized around a private interior courtyard, the three-story, 7,774-square-foot contemporary English manor includes six bedrooms, nine bathrooms, a four-bay garage and a separate carriage home for guests or multigenerational living. Its orientation, enhanced glazing and circulation draw natural light into the interior while strengthening indoor-outdoor living.

Photography by Ikon Media “Good design should support our routines while making space for the ways we evolve,” said Bobby Berk, LivingWell’s designer, Emmy-winning TV host and author. “LivingWell brings that balance of comfort and freedom into wellness-oriented spaces that are deeply connected to the people who live there. This project is exciting because it doesn’t view wellness as just another trend. LivingWell is a platform for imagining where residential design can go next.”

Photography by Kara Mercer The project builds upon Tri Pointe Homes’ LivingSmart program, the company’s longterm commitment to sustainability, energy efficiency and responsible building practices. LivingWell extends to how a home feels by incorporating light, flow, comfort, connection and adaptability into the routines of daily life. The approach is anticipated to be expressed across all six residences at Pavilions at Holladay Hills.
Please visit tripointehomes.com for more information.
Backyard and primary bathroom photos courtesy of Ikon Media.
Kitchen and dining room photos courtesy of Kara Mercer.
Photos courtesy of Tri Pointe Homes.
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Interior design trends to look out for in 2027
Looking towards 2027, interior design trends are evolving from cool-toned, overly staged interiors. Instead, buyers will be looking for warmth and designs that feel grounded. While the cooler color palette of grey and white hues has been popular in the last decade, warm neutrals, earth tones and natural wood cabinetry will take center stage next year in new home construction.
While open floor layouts will carry into 2027, buyers have been prioritizing more privacy, defined zones and flexible rooms for work and quiet. This is also likely to continue in next year’s interior design trends.
Throughout 2026, we have seen buyers’ desire for wellness-focused features such as natural light, quieter spaces and spa-style baths. This drive for wellness-inspired design will continue, as buyers seek interiors that reflect and improve their daily routines.
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Backyard trends that are shaping outdoor living
From a cozy front porch to an expansive backyard, outdoor spaces have become just as important as a home’s interior. Homeowners are looking for complete outdoor environments that support relaxing, entertaining, dining and wellness without sacrificing style.
One of the strongest outdoor trends we’ve seen this year is the continuation of the outdoor living room. Homeowners are asking for the same comfort and visual cohesion they expect indoors: generous seating, layered cushions, tables within reach, shade and a central focal point.
Outdoor cooking remains on the rise, but the best designs are grounded in how the homeowner actually entertains. A well-positioned grill, useful preparation surfaces and convenient serving space can be more valuable than an oversized outdoor kitchen that dominates the backyard.
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Mortgage rates average 6.58%
On July 23, 2026, Freddie Mac released the results of its Primary Mortgage Market Survey, revealing the 30-year fixed-rate mortgage (FRM) averaged 6.58%, up from the week before when it averaged 6.55%. A year ago at this time, the 30-year FRM averaged 6.74%.
“The 30-year fixed-rate mortgage averaged 6.58% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “As market conditions continue to evolve, borrowers should remember that shopping around for a mortgage rate can make a meaningful difference, potentially saving them thousands over the loan’s lifetime.”
The 15-year FRM averaged 5.96%, up from the week before when it averaged 5.93%. A year ago at this time, the 15-year FRM averaged 5.87%.
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New home sales edge higher
According to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, newly built single-family home sales rose 1.6% in June to a seasonally adjusted annual rate of 628,000.
“New home sales are gaining some momentum at the more affordable range of the market, with homes priced below $300,000 accounting for 23% of June sales, up from 16% a year earlier,” said the National Association of Home Builders (NAHB) Chief Economist Robert Dietz. “However, that price point is generally only achievable in markets with lower development and construction costs, particularly with respect to lower state and local regulatory costs.”
“The pace of new home sales has remained constrained in recent months by elevated mortgage rates,” said Bill Owens, chairman of the National Association of Home Builders (NAHB) and a home builder and remodeler from Worthington, Ohio. “Builders continue to use incentives to support sales, with NAHB survey data showing that 62% of builders offered some form of incentive in June.”
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New single-family homes shift to smaller lots
The long-term trend of building single-family detached homes on smaller lots appears to have stabilized. According to an analysis from the National Association of Home Builders, new single-family detached homes have steadily shifted toward smaller lots as a direct result of builders’ efforts to improve affordability and attract homebuyers.
According to the latest Survey of Construction, the share of new homes built on smaller lots remained near record highs in 2025, following more than a decade of steadily shrinking lot sizes.
The share of small lots remained high in 2025, with close to two-thirds of new single-family detached homes sold occupying lots under 9,000 square feet. Moreover, 38% of lots were under 7,000 square feet. These shares are just slightly below the record highs established over the last two years.
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These 5 design trends are back in style
This year has been the year of comebacks; previously outdated trends are making their way back into the limelight. Interior designers weighed in on the former trends they have seen coming back in style in today’s homes.
“After years of safe neutrals and minimalism, there’s a renewed desire for personality in interiors, spaces that people can feel emotionally connected to,” said Phoebe Beachner, an interior designer at Hart Howerton.
While open floor plans have dominated this year, there has been a gradual increase in requests for closed floor plans. This shift might be remerging due to nostalgia, a desire to restore an older home to its roots or a need to confine certain activities and items to certain areas.
Maximalism, brown tones that were highly popular in the 1980s and built-in seating are also back in style.
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June AIA/Deltek Architecture Billings Index gains three points
The American Institute of Architects (AIA) recently released the AIA/Deltek Architecture Billings Index® (ABI) for June; the score at 47.3 is a three-point increase from May.
While the reading increased, a metric below 50 indicates an equal share of firms reporting decreases and increases.
The South continues its reign as the strongest market with a reading at 49.5, despite a 0.01% decrease from May. The West trails at 45.6 with the Midwest close behind at 45.1. The Northeast dropped from 46.2 in May to 44.9 reading in June.
“Architecture firms remain mired in one of the longest running downturns in the 30-plus year history of the ABI, which now stretches to 41 months without a majority of firms reporting billings growth,” said AIA Chief Economist, Richard Branch. “The uncertainty over the conflict in Iran along with high interest rates and significant labor shortages will continue to weigh on construction – and architect billings over the next several months.”
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June housing starts and completions exceed estimates
On July 17, 2026, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development released their new residential construction report for June 2026.
According to the report, privately-owned housing completions in June were at a seasonally adjusted annual rate of 1,392,000, 3.3% above the revised May estimate of 1,347,000 and 1.5 percent% above the June 2025 rate of 1,372,000.
Privately-owned housing starts in June were at a seasonally adjusted annual rate of 1,427,000, 19% above the revised May estimate of 1,199,000 and 3.5% above the June 2025 rate of 1,379,000. Single-family housing starts in June were at a rate of 895,000, a small 0.2% decline from the revised May figure of 897,000.
Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,367,000, only 3% below the revised May rate of 1,410,000. Single-family authorizations in June were at a rate of 871,000, 2.4% below the revised May figure of 892,000.
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Michigan governor signs bills to boost homebuilding
On July 21, 2026, Michigan Governor Gretchen Whitmer signed three bills into law aimed at increasing homebuilding across the state. The bills will enable the Michigan Housing Opportunity Tax Credit to work in tandem with the federal low-income housing tax credit to build more affordable housing and cut red tape to help build new homes.
“Every Michigander deserves an affordable, quality place to call home,” said Whitmer. “I’m proud to sign these bills that cut red tape, lower housing costs and expand our housing stock available to working families looking to put down roots. Over the last seven-and-a-half years, we’ve built more homes than any administration in state history and lowered costs for every Michigander, making it possible for more people to become homeowners. This year’s budget builds on that progress by investing in our neighborhoods and the people who need it most. Let’s keep working together to give every Michigander a shot at finding a place to call home.”
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