Midweek Real Estate Rundown

1. Rates Flat, but Confidence Creeping Back

Mortgage rates have stabilized between 6.3% and 6.5%, which isn’t ideal, but stability itself is confidence-building. After a year of volatility, both buyers and builders are starting to plan again — and that’s the real turning point.

• Mortgage applications are up slightly week-over-week.

• Builders are re-entering design and permitting phases they put on pause.

• Investors are locking in land while competition remains light.

  
  

My take: The best deals get made before the market turns. Smart investors aren’t waiting for 5% rates — they’re negotiating now, knowing that stable beats speculative.

2. Build-to-Rent Continues to Outperform

Across the Midwest, the build-to-rent (BTR) model is quietly outperforming both traditional multifamily and single-family sales.High mortgage costs are keeping many renters in place longer, giving BTR communities the kind of occupancy and rent stability most investors dream about.

• Average rents in smaller metros (Muncie, Kokomo, Columbus) remain strong.

• Institutional investors are exploring secondary markets for yield.

• Construction costs are beginning to normalize — closing the gap between feasibility and profitability.

  
  

My take: We’re seeing validation for the CorePar model — scattered-lot, duplex-style workforce rentals that build equity and community. It’s not just good housing; it’s a smart asset class.

3. Distressed Inventory = Quiet Opportunity

Foreclosure activity ticked up 18% year-over-year, signaling that distress is back on the radar. Don’t mistake this for a crash — it’s a correction.Some owners who bought at the 2022–23 peak are underwater, while smaller landlords are struggling with variable-rate loans.

Where the upside lives:

• Small multifamily properties (2–8 units) needing cosmetic rehab

• Bank-owned or short-sale homes in stable rental corridors

• Seller-financed deals from owners who’d rather move equity than manage tenants

  
  

My take: We’re entering a pocket of opportunity where disciplined investors can buy below replacement cost and hold for strong 5- to 7-year returns.

CorePar Spotlight: Kokomo & Muncie

Our focus areas continue to gain traction:

• Kokomo: City officials remain proactive about zoning flexibility and workforce housing incentives.

• Muncie: Steady job growth and low vacancy rates are driving strong pre-leasing conversations for our Phase I duplexes.

These smaller markets are proving what I’ve said all year — real opportunity doesn’t live in the headlines; it lives in the overlooked zip codes.

Looking Ahead

As we move into late October, I’m tracking:

• Federal shutdown ripple effects on FHA and USDA lending

• Q4 land sales volume (especially in tertiary markets)

• Material pricing for Q1 2026 builds

  
  

Bottom line: Investing right now isn’t about guessing the next rate cut — it’s about positioning before everyone else realizes the pivot’s already started. Stay sharp, stay steady, and I’ll see you next week for another Midweek Real Estate Rundown.