RCN Capital: investor optimism record low

RCN Capital said on August 5 that real-estate investor sentiment fell to a record low in its Summer 2026 survey, extending a decline that began in the prior quarter. The South Windsor, Connecticut-based lender said its Investor Sentiment Index dropped to 84, down three points from spring and 18 points from a year earlier. National Mortgage News reported that 45% of investors said the current business environment had worsened from a year ago, the highest share recorded in the survey’s history. RCN Capital Chief Executive Jeffrey Tesch said rising finance costs, limited inventory, renovation expenses and pressure on rental rates were driving the weaker mood. ### How low did the survey go? RCN Capital said the Summer 2026 reading of 84 was the lowest score in the 12-quarter history of the RCN Capital/CJ Patrick Company Investor Sentiment Index. The company said the index was 87 in the Spring 2026 survey and 102 a year earlier. Only 26% of investors said market conditions were better than a year ago, according to the company’s August 5 release. (prnewswire.com) That was down from 35% in the spring survey, while 29% said conditions were unchanged. ### What number best captures the shift in mood? (realtywire.com) The 45% figure is the clearest sign of the downturn in sentiment. National Mortgage News said 45% of investors in the June-July poll described the current business environment as worse than a year earlier, the highest percentage yet recorded by the survey. RCN Capital’s own survey page said the deterioration in current-condition views accounted for most of the decline. (prnewswire.com) RealtyWire, citing the survey, said the index had now posted a second straight quarter below 90. ### What did investors say is hurting deals? RCN Capital said financing costs remained the biggest challenge in the survey. (nationalmortgagenews.com) Its August 5 release said 55% of investors identified lending costs as a major concern, and 73% expected rates to stay elevated or rise. Jeffrey Tesch said “rising finance costs, limited inventory, escalating home and renovation costs and downward pressure on rental rates” were contributing to investor pessimism. (realtywire.com) The company also cited insurance costs, tariffs and weaker demand in parts of the market as pressures on purchase decisions. (rcncapital.com) ### Was every part of the outlook equally weak? The six-month outlook was less negative than views on current conditions. RCN Capital said 34% of investors expected market conditions to improve over the next six months, even as current-condition readings hit records on the downside. More than 60% of respondents still expected home prices to rise, according to the company’s survey summary. (prnewswire.com) Earlier 2026 coverage of the same survey series also showed fix-and-flip investors were generally more upbeat than rental-property investors, though the new summer release centered on a broader drop in confidence. ### How does this compare with earlier 2026 readings? (rcncapital.com) RCN Capital’s spring survey had already shown a sharp deterioration. PR Newswire’s May 6 archive page said the Spring 2026 survey recorded a 14-point first-quarter drop in sentiment, after winter readings had been more stable. The summer report therefore extends a reversal from the stronger tone seen heading into 2026. (rcncapital.com) Winter coverage cited an index reading of 101, compared with 87 in spring and 84 in summer. ### What comes next in the survey series? RCN Capital published the Summer 2026 survey on August 5 on PR Newswire and on its corporate site. (prnewswire.com) The next update in the quarterly series would typically be the company’s fall survey, again issued with CJ Patrick Company as part of the Investor Sentiment Index. (prnewswire.com) (nationalmortgageprofessional.com)