Fed hikes interest rates for the first time since 2023

✨ Hello from Friday Jr.

Today's newsletter is 625 words — a 2.5-minute read. Let’s dive in…

1. Fed hikes interest rates for the first time since 2023

Despite protestations from President Trump, the Federal Reserve raised its benchmark interest rate 25 basis points to 3.75%-4% on Wednesday, its first hike since July 2023. The decision was unanimous, as the Fed seeks to bring persistent inflation back toward its 2% target.

The Fed’s updated projections point to the possibility of another hike later this year. Officials now expect headline inflation to reach 3.7% in 2026, up from the 3.6% estimate in June, while the unemployment rate is projected at 4.1%.

The move could add pressure to real estate, where higher borrowing costs have already weighed on activity. For buyers, sellers and investors, another hike could mean higher-for-longer financing costs and continued pressure on affordability and commercial transactions.

2. New home construction permits hit a post-pandemic low

Homebuilding is slowing further, with residential building permits down 2.2% in the 12 months through May 2026. Permitting is now 19.2% below its pre-pandemic trendline — the widest gap since the pandemic began, and the 42nd straight month of year-over-year declines.

Here are other key takeaways:

• Single-family completions fell 2.5% in 2025 to about 817,000, marking the third consecutive annual decline.

• San Antonio permits fell 31% year over year to 9,500, while Austin permits dropped 27.5% to 23,622. Both ranked among the sharpest declines nationally.

• Builders are also completing homes faster and on slightly smaller lots, with the median new detached home measuring about 2,300 square feet in 2025, down from 2,400 before the pandemic.

A MESSAGE FROM SUPERHUMAN AI

At Texas Real Estate News, we've been using AI tools like Claude to help with everyday tasks. If you're looking to get more out of Claude, this collection may be worth checking out.

1,000+ Claude Prompts Top Professionals Actually Use at Work

Claude can be your analyst, editor, and strategist.

But most professionals are using it to fix grammar.

These 1,000+ Claude prompts take it from grammar tool to your most powerful AI work assistant.

Sign up for Superhuman AI and get:

• 1,000+ ready-to-use Claude prompts to get real work done in minutes — researched, tested, and used by professionals at Google, Microsoft, and NASA

• Superhuman AI newsletter (4 min daily) so you keep learning new AI tools and skills to stay ahead in your career — the prompts are just the beginning

Claim your free prompts

3. Catch up quick

🏘️ Over half of single-family investors plan to buy in the next year. (ResiClub)

🤝 Coldwell Banker Apex acquires Longhorn Realty in Texas. (HousingWire)

🏛️ Trump nominates Matt Jones to lead the FHA. (NMP)

📉 Austin-area home sales fall 7.3% in August. (UnlockMLS)

📚 Realtor.com, Zillow and housing groups launch a new housing education site. (LetAmericaBuild)

4. First American expands no-cost title monitoring

First American Title is expanding its no-cost property title monitoring and fraud alert service — first launched in January for its direct customers — to homeowners with eligible owner's policies issued through its network of independent title agents. The service alerts homeowners to new filings, such as deeds and liens, that could signal fraudulent activity or an attempt to sell the property without their knowledge.

• The expansion comes as real estate fraud continues to rise — the FBI reported $20.9 billion in cybercrime-related losses in 2025. The American Land Title Association said reported cases of seller impersonation fraud more than doubled over the past two years.

The service is available through participating agents in every state except Vermont, with some county-level restrictions. Eligible properties must be residential or new construction with a valid street address (vacant land qualifies if it has one) and covered by a First American-underwritten owner's policy. Commercial properties and loan-only policies are excluded.

A MESSAGE FROM TEXAS REAL ESTATE NEWS

Wait Until You See the Views From This $2.299M Texas Estate

Denise Carswell, REALTOR® | eXp Realty LLC

📞 210-913-7000 | ✉️ [email protected]

5. Zillow Preview listings coming to RealScout

Zillow Preview listings will be available on RealScout later this year, giving buyers earlier access to homes before they hit the MLS. The integration will bring Zillow’s pre-market listings into the same search experience buyers use with RealScout agents.

Preview listings will be clearly labeled and replaced by the active MLS listing once the pre-market period ends. Agents will also get access to early buyer signals, including views, saves, shares and direct contacts.

The move expands Zillow Preview’s reach beyond Zillow and Trulia, with Realtor.com also set to carry the listings. For agents, the added exposure could provide earlier insight into buyer interest and more opportunities to engage clients before a property officially hits the market.

☀️ Thank you for starting your day with us!

If you like this newsletter, your friends may too. Forward it to a friend, and let them know they can subscribe here.

Interested in advertising to 35k+ Texas Realtors? Email [email protected]