Kiavi Investor Pulse: August 2026 Market & Financing Update

The August 2026 Kiavi Investor Pulse breaks down what actually moved for real estate investors this month, from mortgage rates and foreclosure activity to renovation costs and rental demand. Mortgage rates held mostly unchanged after the Federal Reserve left its benchmark rate unchanged in July, with 30-year rates still hovering near 6.65% by late August, per Freddie Mac. Foreclosure filings kept climbing but at a much slower pace than earlier in the year, and new home listings hit a multi-month high just as buyer demand appeared to cool for the end of summer.

Key Takeaways

The Fed held rates steady in July, and mortgage rates were still near 6.65% in late August.
Foreclosure filings rose 10% year-over-year in July, a much slower pace than the 21% jump seen at midyear.
New listings hit a four-month high while pending sales fell to a six-month low.
Renovation costs fell to $69K per flip, though material prices remain a wildcard.
Kiavi was named to Inc.'s 2026 list of America's fastest-growing private companies.

Did the Fed Change Interest Rates in August?

The Fed held its benchmark rate at 3.50-3.75% in July, and mortgage rates were still hovering near 6.65% in late August.

No. The Federal Reserve does not meet in August. Its last decision came on July 29, when the Federal Open Market Committee voted 9-3 to hold its target range at 3.50-3.75%, with three members dissenting in favor of a rate increase.

The 30-year fixed mortgage rate averaged 6.65% for the week ending August 20, per Freddie Mac, down slightly from a 13-month high and still above the level recorded at the same point last year.

When Is the Next Fed Meeting?

The next meeting is currently scheduled for September 15-16, 2026, and it comes with an updated set of economic projections, which tends to draw more attention from markets than a typical meeting. Real estate investors underwriting a deal that spans that date may want to build in some room for rate movement either direction rather than locking assumptions to today's number.

Kiavi Tip: If your deal math only works at today's rate, it may be worth stress-testing the numbers against a quarter-point move in either direction before you commit.

Is It a Buyer's Market or a Seller's Market Right Now?

New listings hit a four-month high in many areas while pending sales fell to their lowest level since February.

It depends on the metro. Late August data from Redfin shows new listings and total homes for sale increasing in much of the country. New listings rose for the four weeks ending August 23 to their highest level since April, and the total number of homes for sale reached its highest level since May. Pending home sales fell to their lowest level in six months over the same period.

Market Indicator (4 wks ending Aug. 23)	Value	Year-Over-Year Change
Median sale price	$400,649	+1.9%
Pending home sales	307,830	-3.1%
New listings	376,235	+6%
Months of supply	3.8	Up from 3.7
Share of listings with price drops	20.8%	Essentially unchanged

Source: Redfin, August 2026

Where Are Buyers Getting the Best Deals?

Redfin named Miami, Nashville, and large parts of Texas as some of the strongest buyer's markets in the country right now, where house hunters may be able to negotiate price or ask for concessions such as a rate buydown or repair credit. A separate Redfin analysis also flagged late August and early September as a good window to negotiate in several coastal markets, including much of California and Seattle.

Kiavi Tip: In markets Redfin is flagging as buyer-friendly, entry pricing discipline may matter more than speed to close right now. A softer resale market can sometimes work in a real estate investor's favor on the acquisition side, even when it complicates the exit.

Are Foreclosures Still Rising in 2026?

Foreclosure filings rose roughly 10% year-over-year in July, compared to a 21% increase for the first half of the year as a whole.

Yes, according to ATTOM's July 2026 foreclosure report counted 39,906 properties with a foreclosure filing, up 1% from June and up 10% from a year earlier. Foreclosure starts rose roughly 10% year-over-year to 26,648, and completed foreclosures climbed 23% annually to 4,764. That 10% annual growth rate in filings compares with the 21% increase ATTOM reported for the first half of 2026 as a whole.

Metric	July 2026	Month-Over-Month	Year-Over-Year
Total foreclosure filings	39,906	+1%	+10%
Foreclosure starts	26,648	+2%	+10%
Completed foreclosures	4,764	Essentially flat	+23%

Source: ATTOM, August 2026

Which States Have the Highest Foreclosure Rates?

Nevada, South Carolina, and Florida posted the highest foreclosure rates in July, and Texas, Florida, and California led the country in foreclosure starts, per ATTOM. ATTOM's CEO described the increase as a sign that financial pressure remains a factor for some homeowners, while also noting that current volumes still look relatively resilient against a longer historical baseline. For real estate investors holding Gulf and Atlantic Coast properties, this also falls in the middle of hurricane season, which could add its own timeline and insurance considerations to a distressed acquisition.

Kiavi Tip: Foreclosure starts tend to lead completed foreclosures by several months, so tracking starts in your target metro may give you an earlier read on upcoming distressed inventory than waiting for repossession data to show up. If a distressed acquisition later turns into a longer hold than planned, a refinancing roadmap can help you think through next steps.

How Did Fix-and-Flip Markets Perform in the Second Quarter?

Northern California and the Midwest are the only regions where more flippers sold above their target price than below it.

Northern California and the Midwest reported the strongest results in the second quarter, while Texas, the Southeast, and the Northwest reported the largest increases in days on market, according to Kiavi's quarterly survey with John Burns Research and Consulting.

The survey found investor sentiment softened in the second quarter, a period in which the 30-year mortgage rate climbed 40 to 50 basis points. Days on market lengthened in every region except Northern California, where 31% of flippers reported slower sales, compared with 83% in the Northwest and 75% in Texas.

Region	Share Reporting Longer Days on Market	Exit Pricing Read
Northwest	83%	Below target price
Texas	75%	Below target price
Southeast	66%	Below target price
National	59%	Mixed
Northern California	31%	Above target price

Source: John Burns Research and Consulting and Kiavi Q2 2026 Fix and Flip Survey, August 2026

Only about 21% of flippers reported selling mostly below their target price in the second quarter, up slightly from 17% the prior quarter, per the survey. Northern California and the Midwest were the only regions where more flippers reported selling above target than below it. HousingWire noted Texas and the Southeast as the regions with the largest increases in days on market this quarter, consistent with the survey's own regional breakdown.

What Does Kiavi's Own Lending Data Show?

Kiavi's own lending data shows a different trend than the investor sentiment survey for the same period. Charles Goodwin, Kiavi's VP and Head of Bridge and DSCR Lending, told Mortgage Professional America that fix-and-flip loan volume has been growing year-over-year with steady delinquencies, a trend he described as reading less bearish than the survey data. He attributed the gap between survey sentiment and Kiavi's own lending data to flipper fatigue after several years of flat resale volume and stalled rate relief, rather than a fundamental breakdown in the market.

"Florida is one we're watching closely. Resale inventory has been coming down in several of the state's larger markets, and if that trend holds, it could start to relieve some of the pricing pressure flippers there have been absorbing. It's not a market-wide correction yet, just an early signal worth tracking."

— Charles Goodwin, VP and Head of Bridge and DSCR Lending, Kiavi

Kiavi Tip: If your exit timeline was set earlier this year, adding carry months to your model may be more useful right now than adding a line to the rehab contingency. Revisiting when your local market tends to sell fastest and pressure-testing a new offer with the ARV and Cash to Close Estimator can both help before you commit to a listing date.

Is It Still a Good Time to Hold a Property as a Rental?

Apartment occupancy held at 95.5% in the second quarter as new supply fell below its decade norm for the first time in three years.

It depends on the market. Apartment occupancy held at 95.5% nationally in the second quarter, a second straight quarterly gain, according to RealPage. National median rent was $1,388 in July, down 1.1% year-over-year, following six straight months of modest monthly gains, per Apartment List. The South remained the only region with occupancy below 95% and the only region still posting annual rent declines; RealPage attributed this to supply from the 2022 to 2025 construction cycle still being absorbed by the market.

Region	Q2 Occupancy	Annual Rent Trend
Midwest / Northeast	~96%+	Positive
West	~96%+	Turning positive
South (TX, FL, Southeast)	Below 95%	Still declining

Source: RealPage, July 2026

Kiavi Tip: If a listing is not clearing at your target price, modeling a rental hold against this month's actual rent comps, not last year's, tends to give a more reliable read on whether the pivot makes sense.

How Much Does It Cost to Renovate a Fix-and-Flip Right Now?

Average renovation spend fell to $69K per flip in the second quarter, down from $79K in the first quarter.

According to the survey, renovation spend per flipped home fell to $69K, down from $79K the prior quarter, with renovations now representing 15% of the average sale price nationally, versus 17% a year earlier. That national figure may not tell the whole story at the project level. Rehab and related costs could still run 20-33% of a property's target sale price, and building material prices rose 3.7% in April alone, the fastest pace in three years, per NAHB, so a budget built on last year's quotes could still come in short.

The most common sources of a rehab going over budget tend to include:

Hidden conditions, such as foundation, electrical, or plumbing issues, that surface after demolition
Material cost swings that move faster than a fixed budget assumes
Scope creep, when work gets added that was not in the original estimate
Labor availability and timeline slippage, which can extend carrying costs

Many experienced fix-and-flip investors build in a contingency of 10-15% of the rehab budget to absorb these surprises before reaching for outside cash. Kiavi's guide to rehab budget overages walks through how draw schedules, contingency reserves, and cash reserves each play a role when a project runs hot.

Kiavi Tip: Falling average renovation spend nationally does not mean your specific trades have repriced downward. Rebidding your two largest line items against current quotes before closing may be worth the time it takes.

Did Kiavi Win Any Industry Recognition This Month?

Kiavi earned a spot on the 2026 Inc. 5000, a list where the median honoree posted 130% three-year revenue growth.

Yes. Kiavi was named to Inc.'s 2026 list of America's fastest-growing private companies, a ranking based on revenue growth from 2022 to 2025. The recognition follows a year in which Kiavi originated a record $7.8 billion in loan volume in 2025, up 20% over the prior year, even as broader home sales stayed roughly flat, per Redfin.

"For more than a decade, Kiavi has committed to removing friction from the lending process so that real estate investors can move faster and scale with confidence,"

Arvind Mohan, CEO of Kiavi

What Is the Industry Saying About Fix-and-Flip Financing Right Now?

Trade press coverage this month largely tracked the same story from different angles. Scotsman Guide and HousingWire both covered the softening in flipper sentiment and the regional divergence in exit pricing, while Mortgage Professional America spoke directly with Charles Goodwin about how survey sentiment compares with what Kiavi sees in its own origination data.

Elsewhere, Morning Brew's The Playbook profiled hard money lending for a broader consumer audience, featuring a Kiavi borrower, Tiffany DaSilva, who closed a $169,400 loan in three weeks to buy a foreclosure at auction. The piece may be a useful one to share with a newer real estate investor who is still unsure whether hard money financing is the right fit for a first deal.

This month's coverage at a glance:

What It Could Mean for Your Deals

The Fed held rates held steady, foreclosure filings continued to rise year-over-year at a slower pace than earlier in 2026, resale inventory increased in many metros, and fix-and-flip survey results varied by region.

Regional and submarket conditions appeared to diverge more than the national headlines suggest this quarter, which is why entry pricing and hold-period assumptions may be worth evaluating on a market-by-market basis.

Ready to put this market data to work on your next deal?

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Frequently Asked Questions

Frequently Asked Questions (FAQs) About the August 2026 Real Estate Market

Common questions about the August 2026 real estate market, covering the Fed's rate decision, current buyer and seller conditions, the foreclosure trend, fix-and-flip markets, rental demand, and renovation costs.

The Fed did not meet in August. Its most recent decision came on July 29, when it held the target rate at 3.50-3.75% by a 9-3 vote, with three members dissenting in favor of a hike. The next meeting is scheduled for September 15-16, 2026.

Conditions vary by metro, but Redfin characterized much of the country, including Miami, Nashville, and large parts of Texas, as a buyer's market in late August 2026, with new listings at a four-month high and pending sales at a six-month low. For a real estate investor, that mix may create more room to negotiate on entry price in several higher-inventory metros.

Yes, but the pace of increase slowed in July: filings were up 10% year-over-year, well below the 21% jump recorded across the first half of the year, per ATTOM. The trend is still pointed upward, but the deceleration may suggest financial pressure on homeowners is building more gradually than it was earlier in the year.

Northern California and the Midwest may be holding up best, according to the Q2 2026 John Burns Research and Consulting + Kiavi Fix and Flip Survey, with the shortest days-on-market increases and the only regions where more flippers sold above their target price than below it. With areas such as Texas, the Southeast, and the Northwest showing the most strain.

It's mixed. Apartment occupancy held at 95.5% nationally in the second quarter as new supply growth slowed to its lowest pace in three years, per RealPage, but national median rent was still down 1.1% year-over-year in July, per Apartment List. A rental hold may pencil out more easily in supply-constrained Midwest and Northeast markets than in Sun Belt metros still absorbing recent construction.

Average renovation spend fell to $69K per flip in the second quarter, down from $79K in the first quarter, according to the Q2 2026 John Burns Research and Consulting + Kiavi Fix and Flip Survey. But individual projects can still run well outside that average. A contingency of 10-15% of the rehab budget is a common safeguard against hidden conditions, material cost swings, and scope creep.