Pending home sales in August increased by 4%

Plus: You need this mortgage app!

September 30, 2025

☕️ Happy Tuesday! Thanks for being with us throughout September.

Today's newsletter is 867 words, a 3-minute read.

1. Homebuilder's tactics leave buyers facing foreclosure

A new Hunterbrook investigation suggests LGI Homes may be targeting low-income renters with deceptive ads that promise unrealistically low prices—then pressuring them into expensive homes through highly scripted, aggressive sales tactics.

LGI Homes marketed monthly payments that appeared no higher than rent but left out taxes, insurance, and fees. Once those costs were added, many buyers saw their bills jump 30% to 70% higher than advertised.

Hunterbrook’s analysis found LGI buyers were nearly four times more likely to face foreclosure than typical FHA borrowers—a group already considered high risk. In Dallas County alone, LGI accounted for 7% of foreclosure auctions last year despite building just 1% of homes there.

2. Pending home sales in August increased by 4%

According to a report released Monday by NAR, pending home sales in the U.S. rose 4.0% in August compared to July and were up 3.8% from a year earlier.

All four regions posted annual gains, led by the Midwest, where the index climbed 6.7% to 76.4. The South followed with a 4.2% increase to 88.9, the Northeast rose 2.6% to 63.7, and the West inched up 0.2% to 59.3.

Realtors are also feeling more confident, NAR said, with 19% of NAR members anticipating an increase in buyer traffic in the next three months, up from 16% the previous month and unchanged from one year ago.

"Lower mortgage rates are enabling more home buyers to go under contract. In the Midwest, low mortgage rates combined with high levels of affordability are attracting more buyers compared to other regions."

Lawrence Yun, NAR Chief Economist

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3. Catch up quick

🚨 Zillow hit with job discrimination lawsuit by a ‘day one’ employee. (HousingWire)

🏛️ No deal on avoiding a shutdown after White House meeting. (BBC)

🤝 Investors bought 33% of single-family homes in Q2 2025, the highest share in 5 years. (BatchData)

📉 Existing-home sales decreased 0.2% in August. (NAR)

4. Douglas Elliman faces insider trading probe

The Financial Industry Regulatory Authority (FINRA) has launched an inquiry into the trading activities related to Douglas Elliman following reports of a potential takeover bid by Anywhere.

The investigation aims to identify individuals within the brokerage who may have possessed insider knowledge about the acquisition attempt prior to its public disclosure in late May.

The focus on insider trading raises significant concerns regarding market integrity, as the timing of certain trades suggests that select parties might have acted on undisclosed information regarding the proposed acquisition.

5. Homes less affordable in 99% of nation's counties

According to an ATTOM report, median-priced single-family homes and condos were less affordable than their historical norms in 99% of counties.

The national median home price climbed to a record $375,000 in Q3 2025, deepening affordability challenges across much of the country. Among the 580 counties analyzed, 44.7% (259 counties) saw a decline in their affordability index compared to the previous quarter.

Homeownership costs exceeded roughly 28% of the average resident’s income in 79% (460 counties). Harris County topped the list of the most populous counties where home expenses remained more manageable, with median homeownership costs requiring just 23.3% of a typical resident’s annual wages.

“The drop in mortgage rates will help some buyers keep pace with the rising cost of homes. But the more favorable loan rates could also enable prices to keep rising and further extend this two-and-a-half-year streak we’re in of homes being less affordable to the typical resident of an area than they historically have been.”

Rob Barber, ATTOM CEO

6. Texas GDP and income growth outpace national avg

New data from the Bureau of Economic Analysis shows that Texas’ gross domestic product (GDP) grew 6.8% in the second quarter, compared with the national rate of 3.8%.

  • The biggest drivers were mining, quarrying, and oil and gas extraction, which contributed 2.01% to the state’s growth, and manufacturing, which added 1.53%.

Texans’ personal income also rose 6.4% year-over-year, outpacing the national average of 5.5%. Gov. Greg Abbott praised the report, pointing to the state’s efforts to cut red tape and promote economic development.

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