Overview
- Mortgage Bankers Association data show the average 30‑year fixed rate rose to 6.56% for the week ended May 15, with daily lender surveys reporting mid‑to‑upper 6% readings later in the month.
- Weekly mortgage applications fell about 2.3% as purchase loan requests dropped roughly 4%, while the share of adjustable‑rate mortgage applications climbed to near 10% as buyers seek lower initial rates.
- Homebuilder sentiment in May ticked up to 37 on the NAHB/Wells Fargo index but remains below the 50 breakeven level, reflecting persistent caution among builders.
- Applications to buy newly built homes slipped 2.4% year‑over‑year in April and fell 10% from March, with more buyers using FHA and VA loans and builders relying on price cuts, incentives and rate buydowns to move inventory.
- Markets point to a clear cause: higher oil prices and war‑related inflation pushed Treasury yields and borrowing costs higher, and the new Fed leadership plus heavy Treasury issuance could keep rates elevated and further strain affordability for would‑be buyers.