How Higher Mortgage Rates Are Reshaping Rental Demand

On this episode of The Housing Economy, Lucas and Luna examine a surprising divergence in the housing market as of August 2026: while homebuilder stocks are rallying on strong earnings, real estate investment trusts—especially apartment REITs—are slipping. Digging into the data, they find that the 30-year fixed mortgage rate has crept back up to 6.69 percent, and with home prices holding near $410,700, more households are choosing to rent rather than buy. This shift is boosting demand for apartments, yet the market is pricing in concerns about rent growth slowing. Lucas explains how the recent jobs report, which showed a loss of 23,000 jobs in July, could further impact the rental market, while Luna questions whether the lock-in effect is forcing potential buyers to stay renters longer. They also discuss how REITs like Equity Residential are navigating rising costs and what the divergence between builders and REITs signals for the broader economy. #HousingMarket #RealEstateInvesting #RentalMarket #MortgageRates #HomePrices #REITs #HomebuilderStocks #ApartmentDemand #JobsReport #Economics #HousingEconomy #FexingoBusiness #BusinessPodcast #RealEstateTrends #LockInEffect #RentVsBuy #HousingData #Investing Keep every episode free: buymeacoffee.com/fexingo