Rick Palacios Jr.: Adjustable-rate mortgages reach 35% share in 2Q26 at Century Communities

Rick Palacios Jr.: Adjustable-rate mortgages reach 35% share in 2Q26 at Century Communities
ARMs reach 35% at Century Communities

Rick Palacios Jr. highlights comments from the 2Q26 Century Communities earnings call indicating that adjustable-rate mortgages (ARMs) now make up 35% of mortgages at the company, compared to 30% in 1Q26 and less than 5% in 1Q25.

According to the call, executives indicated that ARMs could continue to grow in share, with much of the recent improvement in homebuyer incentives driven by these loan products.

Palacios has recently reported that Austin's single-family rent growth remains negative year-over-year but is showing steady improvement, according to his summary on the market. He also highlighted earnings commentary from D.R. Horton showing lot costs up 5% year-over-year, which matches findings from his residential land survey. These updates reflect ongoing shifts in the U.S. housing sector tracked by Palacios.

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