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Housing Activity Stabilizes in June as Forecasts Are Trimmed

Small monthly sales gains plus a modest easing in fixed rates signal the market has stopped sliding, with mid-6% mortgage rates keeping many buyers sidelined.

Overview

  • The Canadian Real Estate Association revised its 2026 sales forecast on Wednesday to 463,336 transactions, a 1.4% drop from 2025, while reporting June sales edged up 0.5% from May.
  • U.S. contract signings fell sharply, with pending home sales down 5.4% in June and existing-home closings slipping even as the national median closed price hit a record.
  • Mortgage costs remain elevated near the mid-6% range for 30-year fixed loans, which is constraining affordability and keeping marginal buyers out of the market.
  • Builders are reporting softer demand: the NAHB sentiment index fell to 34 in July and a growing share of builders are cutting prices or offering incentives to clear rising inventories.
  • New-home loan applications were up year-over-year even as unsold new-construction supply grew, and forecasters have pushed a fuller rebound into 2027 if rates and listings stabilize.