Housing and Mortgage Monitor: Concessions granted, Housing Act planted

Research evidence excerpt

Housing and Mortgage Monitor: Concessions granted, Housing Act planted

Credit Strategy Research

1 July 2026 | 5:36PM EDT

HOUSING AND MORTGAGE MONITOR

Concessions granted, Housing Act planted

Home price growth has flattened over the past year, with 2026, sellers offered concessions on 46% of home sales vs. Arun Manohar

+1(212)902-8763 |

sellers offering more price concessions to drive sales 43% during the same three-month period in 2025 (Exhibit arun.manohar@gs.com

Goldman Sachs & Co. LLC

2). The increase was primarily driven by an increase in the

ShumwayAt the start of the year, 2026 appeared poised for a housing Ben +1(801)578-2553 share of sellers accepting a discounted sale price. Regions |

recovery, supported by three factors: a roughly 50bp decline ben.shumway@gs.comGoldman Sachs & Co. LLC with larger inventory gains in recent years, and therefore

in mortgage rates in 2H 2025, the announcement of a $200 greater competition among sellers, are seeing a higher Neth Karunamuni

billion GSE MBS purchase program that briefly pushed +1(212)934-0799neth.karunamuni@gs.com| share of sales with concessions (Exhibit 3). Metro areas with Goldman Sachs & Co. LLCmortgage rates below 6.0%, and the administration’s

higher concession rates, including both price and non-price

heightened focus on housing affordability, which raised

concessions, have also experienced larger home-price

expectations for additional policy support. However, the rise

declines over the past year (Exhibit 4).

in interest rates since that time has pushed mortgage rates

back out to 6.5% and has dampened enthusiasm in the

housing market. As a result, home price appreciation (HPA)

and home sales activity are likely to be weaker vs. our

expectation from the beginning of the year. Contrary to our