Meet the buyers who keep buying—despite high rates

High mortgage rates have sent homebuyers running for the hills and pushed sales to record lows. But one type of buyer is still showing up—and cleaning up on deals.

“Real estate investors tend to be more resilient in a tough market,” explains Realtor.com economist Hannah Jones, author of a report on investor activity in the first half of the year. Even amid rates north of 7%, investors “remain significantly more engaged than typical buyers.”

Here’s what investors have been up to, from where they’re house hunting to how much they’re paying.

The numbers

Investors bought 224,000 homes in the first half of 2026: a 7% year-over-year drop and the lowest first-half tally since 2020. Even so, they still purchased 10.7% of homes sold, about the same share as in the same period last year.

But the real story is what investors paid: a median of $295,000 per home—22.4% less than the $380,000 regular buyers ponied up. And the discounts are even lower based on where they shop.

Where investors are buying

Overall, investors are zeroing in on two regions: the Midwest, where low prices are poised for growth, and the Sun Belt, where abundant inventory has cooled prices. Both areas also have plenty of renters moving in, drawn by strong job markets and cheap housing. For savvy homebuyers, these cities offer a greater ROI than established hot spots like the Northeast and West Coast.

What’s next

That all depends on where rates land. “Investors have historically gained share when rates stay high and non-investor demand weakens,” Jones explains. So if rates stay above 7%, an investor could be the last buyer standing at the open house with plenty of room to negotiate.

Stephen Keighery at Home Buyer Louisiana is seeing this on the ground in New Orleans. “The reason investors are dominating right now is that many homeowners with low locked-in mortgage rates are staying put,” he says. However, the sellers who are listing often need to be because they’re in distress. “Those aren’t properties that retail buyers are eager to take on,” Keighery explains. “That’s where investors step in. Take advantage of this buyer’s market while it lasts. For years it was tough to find good deals, and this moment is an opportunity.”