08/24/2026
𝗥𝗜 𝗠𝗢𝗥𝗧𝗚𝗔𝗚𝗘 𝗠𝗢𝗡𝗗𝗔𝗬
𝗠𝗼𝗿𝗲 𝗟𝗶𝘀𝘁𝗶𝗻𝗴𝘀, 𝗦𝗹𝗶𝗴𝗵𝘁𝗹𝘆 𝗕𝗲𝘁𝘁𝗲𝗿 𝗥𝗮𝘁𝗲𝘀 𝗮𝗻𝗱 𝗪𝗵𝗮𝘁 𝗕𝘂𝘆𝗲𝗿𝘀 𝗖𝗮𝗻 𝗗𝗼 𝗡𝗼𝘄
Rhode Island buyers received a little encouraging news this week: mortgage rates improved slightly for the second consecutive week, and more homes came onto the market in July.
Neither development completely solves today’s affordability challenges, but both can create opportunities for buyers who are prepared and have their financing organized before the right property becomes available.
Here’s what buyers, homeowners and real estate professionals should know.
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𝗠𝗢𝗥𝗧𝗚𝗔𝗚𝗘 𝗥𝗔𝗧𝗘𝗦 𝗜𝗠𝗣𝗥𝗢𝗩𝗘𝗗 𝗦𝗟𝗜𝗚𝗛𝗧𝗟𝗬
According to Freddie Mac, the national average 30-year fixed mortgage rate declined from 6.67% to 6.65% as of August 20. The 15-year average moved from 5.96% to 5.95%.
This was a small improvement—not a major rate drop—but it marked the second consecutive week that rates moved in the right direction.
Long-term Treasury yields, which strongly influence mortgage pricing, remain volatile. Minutes from the Federal Reserve’s July meeting also showed continued concern about inflation.
𝗪𝗛𝗔𝗧 𝗧𝗛𝗜𝗦 𝗠𝗘𝗔𝗡𝗦 𝗙𝗢𝗥 𝗕𝗨𝗬𝗘𝗥𝗦
Rather than trying to predict the perfect week to buy, borrowers should focus on the parts of the transaction they can control:
• Establish a comfortable monthly-payment range.
• Compare different down-payment options.
• Determine whether seller credits or a temporary buydown could improve affordability.
• Strengthen credit and reduce unnecessary monthly debt.
• Get financing fully reviewed before making an offer.
• Preserve the ability to refinance if rates eventually improve enough to create a meaningful benefit.
A small weekly rate movement usually matters less than finding the right property, negotiating favorable terms and selecting the correct financing structure.
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𝗥𝗛𝗢𝗗𝗘 𝗜𝗦𝗟𝗔𝗡𝗗 𝗕𝗨𝗬𝗘𝗥𝗦 𝗦𝗔𝗪 𝗠𝗢𝗥𝗘 𝗡𝗘𝗪 𝗟𝗜𝗦𝗧𝗜𝗡𝗚𝗦
The Rhode Island Association of Realtors reported that 9.4% more single-family homes were listed for sale in July than during the same month last year.
That is a positive development for buyers who have struggled to find suitable properties.
However, overall active inventory remained unchanged year over year because buyer demand continued to absorb much of the new supply.
Rhode Island finished July with approximately 2.7 months of single-family inventory—still well below what would normally be considered a balanced market.
The statewide median single-family sales price reached $525,000, up 4% from $505,000 in July 2025. Closed sales declined 3.2%, while pending sales declined 5.8%.
𝗪𝗛𝗘𝗥𝗘 𝗧𝗛𝗘 𝗢𝗣𝗣𝗢𝗥𝗧𝗨𝗡𝗜𝗧𝗬 𝗜𝗦
This is not a true buyer’s market, but more new listings can give prepared buyers additional choices and reduce the feeling that they must chase every property.
Potential opportunities may include:
• Homes that have been listed longer than competing properties
• Properties needing cosmetic improvements
• Listings with recent price reductions
• Sellers willing to provide closing-cost assistance
• Homes returning to the market after a previous transaction fell apart
• Properties where a flexible closing date could strengthen an offer
Buyers should not assume every home will sell immediately or above asking price. Each property should be evaluated based on its condition, location, competing offers and the seller’s motivation.
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𝗔𝗙𝗙𝗢𝗥𝗗𝗔𝗕𝗜𝗟𝗜𝗧𝗬 𝗦𝗧𝗜𝗟𝗟 𝗥𝗘𝗤𝗨𝗜𝗥𝗘𝗦 𝗣𝗟𝗔𝗡𝗡𝗜𝗡𝗚
Higher home prices continue to place pressure on monthly payments.
For illustration, using 10% down, July’s $525,000 median price and a 6.65% interest rate would produce approximately $3,033 per month in principal and interest.
Using last year’s $505,000 median price and a 6.58% rate would produce approximately $2,897 per month.
That is an increase of roughly $137 per month before property taxes, homeowners insurance, mortgage insurance or association fees.
The numbers reinforce an important point: waiting for a small rate improvement does not always improve affordability if home prices rise while the buyer waits.
A better strategy is to review the complete transaction—including the price, interest rate, down payment, seller credits, mortgage insurance and future plans—rather than making the decision based on the interest rate alone.
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𝗖𝗢𝗡𝗗𝗢𝗦 𝗔𝗡𝗗 𝗠𝗨𝗟𝗧𝗜𝗙𝗔𝗠𝗜𝗟𝗬 𝗛𝗢𝗠𝗘𝗦
Rhode Island’s median condominium price increased 7.4% to $399,900, while condo sales declined 10.3%.
Multifamily sales increased 15.1% compared with July 2025, while the median multifamily price remained relatively stable at approximately $620,000.
Condos may offer a lower purchase price than many single-family homes. Owner-occupied multifamily properties can potentially provide rental income and long-term flexibility.
These properties also come with additional considerations.
Condo buyers must account for association fees and project eligibility. Multifamily buyers need realistic expectations about rental income, maintenance, landlord responsibilities and required reserves.
Neither property type is automatically the right answer, but both deserve consideration when building a realistic path to homeownership.
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𝗡𝗘𝗪 𝗖𝗢𝗡𝗗𝗢 𝗥𝗨𝗟𝗘𝗦 𝗠𝗔𝗞𝗘 𝗘𝗔𝗥𝗟𝗬 𝗥𝗘𝗩𝗜𝗘𝗪 𝗠𝗢𝗥𝗘 𝗜𝗠𝗣𝗢𝗥𝗧𝗔𝗡𝗧
Conventional condo-financing requirements changed for many applications dated August 3, 2026 or later.
Most condo developments containing more than 10 units will now require a more complete review of the association and the overall project.
The lender may need to evaluate:
• The association’s annual budget
• Reserve contributions and reserve studies
• Insurance coverage and deductibles
• Deferred maintenance or structural concerns
• Pending special assessments
• Association delinquencies
• Litigation
• Overall project eligibility
This does not mean buyers should avoid condos. It means the development should be reviewed early.
A buyer can have excellent credit, stable income and a strong down payment but still experience delays if the association’s documents are incomplete or the development does not meet conventional financing requirements.
𝗛𝗢𝗪 𝗕𝗨𝗬𝗘𝗥𝗦 𝗔𝗡𝗗 𝗥𝗘𝗔𝗟𝗧𝗢𝗥𝗦 𝗖𝗔𝗡 𝗦𝗧𝗔𝗬 𝗔𝗛𝗘𝗔𝗗 𝗢𝗙 𝗜𝗧
Before a condo transaction gets too far along, ask for the association’s:
• Current annual budget
• Master insurance information
• Current or upcoming special assessments
• Recent meeting minutes
• Reserve study, if available
• Information about planned repairs or deferred maintenance
Early review can uncover potential issues while buyers still have time to evaluate their options.
It also gives listing agents and associations an opportunity to provide missing documentation before it disrupts a transaction.
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𝗧𝗛𝗘 𝗕𝗢𝗧𝗧𝗢𝗠 𝗟𝗜𝗡𝗘
Rhode Island’s housing market remains challenging, but it is not without opportunity.
More homes are coming onto the market. Mortgage rates have improved slightly. Some sellers are becoming more flexible, and buyers have more financing strategies available than simply buying immediately or continuing to wait.
The people in the strongest position will be those who prepare early, understand the complete monthly payment and work with professionals who can identify financing or property issues before they threaten the transaction.
If you are considering buying, refinancing or preparing for a future move, I’m happy to review the numbers and help you build a realistic plan—even if you are not ready to purchase immediately.
Jeff Gaccione
Mortgage Loan Advisor | NMLS #20461
Embrace Home Loans
(401) 419-6734
[email protected]
Instagram: .Mortgage.Pro
𝗦𝗢𝗨𝗥𝗖𝗘𝗦
Freddie Mac Weekly Mortgage-Rate Survey:
https://www.freddiemac.com/pmms
Rhode Island Association of Realtors July Report:
https://www.rirealtors.org/news/2026/08/20/press-release/annual-monthly-gains-in-median-price-continue-in-rhode-island-s-housing-market/
Fannie Mae Condo Project Update:
https://singlefamily.fanniemae.com/news-events/lender-letter-ll-2026-03-updates-project-standards-property-insurance-requirements
Mortgage rates referenced are national survey averages provided for general informational purposes. Actual rates, payments, program availability and qualification requirements vary based on the borrower, property, loan program and market conditions.
