Housing Investor Confidence Falls to Record-Low 84 as Mortgage Rates Hit 1-Year High
Updated
Updated · Mortgage Professional · Aug 14
Housing Investor Confidence Falls to Record-Low 84 as Mortgage Rates Hit 1-Year High
3 articles · Updated · Mortgage Professional · Aug 14
Summary
The RCN Capital/CJ Patrick investor sentiment index dropped to 84 in June, down 3 points from Q1 and 18 from a year earlier, marking a second straight quarterly record low.
Forty-five percent of more than 300 fix-and-flip and rental investors said conditions worsened, as higher borrowing costs, the Iran conflict, limited inventory, and rising home and renovation expenses squeezed returns.
Purchase activity is already retreating: investors bought 23% fewer homes in Q1 2026 than in both the prior quarter and a year earlier, while 32% now plan no purchases at all this year.
Near-term relief looks limited, with three-quarters expecting no rate easing soon, though 34% see conditions improving over the next six months and more than 60% expect home prices to rise.
Smaller investors remain constrained through 2026, and 28% said they recently paid cash for purchases, underscoring a shift away from expensive credit as large institutional buyers face new ownership limits.