US Housing: Sales, Builders and Mortgage Rates — 2026-09-22
Mortgage rates hover near 7% — their highest level in over a year — with Freddie Mac's 30-year fixed at 6.95% as of September 17. Builder earnings are in focus: Lennar reported a steep Q3 miss with 9% lower new orders and incentives at 12% of sales price, even as Berkshire Hathaway expanded its stake. The market is tilting toward buyers on paper, but Americans are still slamming the brakes on homebuying.
US Housing: Sales, Builders and Mortgage Rates — 2026-09-22
Top developments
KB Home reports Q3 results as affordability grinds the market
KB Home on September 22 reported its third-quarter results for the quarter ended August 31, 2026, saying it is "operating in a housing market that continues to" face headwinds — the release comes the same day rates hover near multi-year highs. Builder results remain a key read on whether incentives can unlock new-home demand for first-time buyers.
Lennar's Q3 miss flags a broader housing warning
Lennar on September 16 reported a 9% year-over-year revenue decline to $8.05 billion, diluted EPS of $1.19 (down from $2.29), new orders down 9%, and deliveries down 3%, while cutting its annual delivery target to 80,000–81,000 homes. Incentives reached 12% of sales price and gross margin came in at 15.8%, even with record 116-day construction cycle times. The results weigh on rivals D.R. Horton and PulteGroup and underscore how high rates are squeezing first-time-buyer affordability.
Berkshire Hathaway doubles down on Lennar despite the weakness
Warren Buffett's conglomerate expanded its position in Lennar, picking up a $212 million lot as the stock hit a 52-week low, and LEN shares rose overnight on the news. The bet is a contrarian signal against the affordability-driven gloom now dominating builder earnings.
Mortgage rates hover around 7%, stalling any fall recovery
Freddie Mac's Primary Mortgage Market Survey put the 30-year fixed at 6.95% as of September 17, up from 6.76% the prior week and 6.26% a year earlier; the 15-year fixed averaged 6.26%. The Federal Reserve's September rate hike has sent fresh shockwaves through housing, stalling the fall 2026 recovery.
Market is shifting toward buyers — but they aren't biting
CNN Business reported September 21 that after years of seller advantage, the US housing market is subtly shifting in buyers' favor, yet many buyers remain reluctant to move. Higher-for-longer rates and locked-in 3% mortgages on existing owners are keeping would-be sellers and movers on the sidelines.
Local view
Spanish-language outlets in the US are focusing on the squeeze on Hispanic and first-time buyers. Univision reported growing cost-of-living worries after the Fed's key rate increase, with mortgage rates "rozan el 7%". La Opinión noted experts' warnings that the combination of mortgage rates near 7% and higher home prices is keeping prospective buyers out of the market. UnoTV highlighted that rates at a 16-month high have sunk refinancing applications by 65%, with a particular impact on Latino buyers.
Context & numbers
- Freddie Mac 30-year FRM: 6.95% (Sept. 17), up from 6.76%; 15-year FRM: 6.26%.
- July 2026 existing-home sales: down 1.7% month-over-month; median price $431,400; inventory at a 4.6-month supply.
- Lennar fiscal Q3: revenue $8.05B (-9% y/y), EPS $1.19, gross margin 15.8%, incentives 12% of sales price, orders -9%, delivery guide cut to 80,000–81,000 homes.
- Berkshire Hathaway's new Lennar stake: $212 million.
On the radar
- NAR's next existing-home sales release (September data) is scheduled for Tuesday, October 13, 2026, at 10:00 a.m. Eastern — a fresh test of whether near-7% rates deepen the sales slowdown.
- The Federal Reserve's September rate hike and its aftermath will keep upward pressure on mortgage rates; analysts see a "higher-for-longer" environment taking shape.
- Watch how aggressively D.R. Horton and PulteGroup follow Lennar's lead on incentives heading into the fall selling season.
- Rumor-flagged: some rate indices already show the 30-year rate cracking 7%, ahead of Freddie Mac's official survey, according to The Real Deal's Housing Notes column.
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