July 2026 | Real Estate & Investment Perspective by Karen Lee Bertiger

2026/07/172026/07/17

Mortgage Rates

30-year fixed-rate (Conforming – $832,750 or less)
● Average contract interest rate increased to 6.65% from 6.58%.
● Highest level since August 2025.
● Points increased to 0.67 from 0.64 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
30-year fixed-rate (Jumbo – greater than $832,750)
● Average contract interest rate increased to 6.62% from 6.50%.
● Points increased to 0.54 from 0.42 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
30-year fixed-rate (FHA)
● Average contract interest rate increased to 6.33% from 6.28%.
● Points increased to 0.81 from 0.79 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
15-year fixed-rate
● Average contract interest rate increased to 6.05% from 5.99%.
● Points increased to 0.88 from 0.71 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
5/1 ARM
● Average contract interest rate decreased to 5.75% from 5.84%.
● Points decreased to 0.93 from 0.94 (including the origination fee) for 80% LTV loans.
● Effective rate decreased from last week.

Joel Kan, MBA’s Vice President and Deputy Chief Economist: “Mortgage applications declined as the 30-year fixed rate increased to 6.65 percent, the highest level since August 2025. Purchase applications were down over the week and dipped below last year’s pace in the week following the July 4th holiday. Despite higher mortgage rates, refinance applications increased, led by FHA and VA refinance applications rising 9 and 10 percent, respectively.”

2026/07/082026/07/08

How Important is Accurate Information About Property?

Real estate licensees are expected to present accurate, verified information about the physical characteristics of a property. These days, some of their descriptions read more like puff marketing pieces. Yes, it’s a tough sales market, but all marketing by licensees is regulated by the states where they are licensed. Many agents are using AI to write property descriptions, complete with AI hallucinations.

Trying to project that a particular property is a “lifestyle” type property a la social media can subject licensees to serious discipline. Marketing to a particular segment of the population may invite scrutiny into possible violations of Fair Housing laws, etc.

For you, as a buyer, let your agent know that you will make the determination of what is necessary and desirable for yourself, by using objective criteria about the property details.

Also, it doesn’t hurt to verify the license status of someone claiming to be a real estate licensee before you meet with them or let them into your home.

You can check real estate agents’ licensing status by visiting arello.com

2026/07/082026/07/08

Debt to Income Ratios (DTI) Being Approved by Banks at Higher Percentage (40%) Than in 2007 (39%)

Not since right before the Great Financial Crisis have we seen this! It just appears to me that lenders are trying to get you to play with fire again.

BUYERS! This is a dangerous move at today’s real estate prices. Prices must come down, or you need to offer less on a property that fits your criteria, by finding a seller who is realistic on price and needs to sell (motivated.)

Or WAGES need to increase. Wages are NOT keeping up with inflation. The median income in the US today is approximately $85,000. The income needed to get that DTI under 30% is $110,000 for a wage gap of 28%!

Traditionally, DTI was 28/36%. These days, my recommendation is to keep your DTI under 20% if you can because of the problems with property taxes and property insurance.

Locally here in Florida, many insurnace companies are dictating that costly home improvements be made before renewing your policy. Don’t ignore this. Shop around for new insurance quotes immediately. Don’t let this slide into a situation where you end up with forced insurance placement from your lender.

Sellers would be wise to price their properties correctly from the beginning of marketing.

Remember, your property really isn’t on the market unless it’s on the list…the MLS…and is AVAILABLE to the public for showing to the entire market.