We were off yesterday for Memorial Day — hope you had a great long weekend! Here’s your mortgage and housing market update for the week of May 25th, 2026.
Last week in housing and the economy
Housing data last week painted a mixed picture. Housing starts fell nearly 3% in April, driven by slower single-family construction — but building permits rose 5.8%, led by multi-family projects, which can signal more activity ahead.
Pending home sales rose 1.4% in April, marking the third consecutive monthly increase and up 3.2% year over year — a signal that buyers remain active despite affordability challenges.
The latest Federal Reserve meeting minutes revealed growing disagreement among policymakers. Some officials support rate cuts if conditions soften, while a majority said additional hikes could still be warranted if inflation stays above 2%.
On the geopolitical front, weekend hopes for an Iran peace deal gave way to uncertainty after U.S. defensive strikes in the Strait of Hormuz. Oil prices and the situation in Iran continue to influence mortgage rates — markets are cautiously hopeful for now.
Mortgage rates: Optimal Blue index
According to the Optimal Blue index, the average 30-year fixed rate was trending higher as of Friday, May 22, 2026.
A few important reminders: the Optimal Blue index reflects data from roughly 35% of mortgage transactions — from lenders using their platform — so it’s a useful benchmark but not the full market picture. Rates move daily, so last Friday’s rate isn’t available to lock today. Your specific rate will depend on your credit scores, loan-to-value ratio, loan type, and other individual factors. This figure is meant to help you understand where rates have been trending.
Economic calendar: week of May 25th
- Monday – Market holiday (Memorial Day)
- Tuesday – Case-Shiller & FHFA home price reports, Consumer Confidence
- Wednesday – ADP Employment
- Thursday – PCE, GDP, Jobless Claims, Durable Goods, New Home Sales
- Friday – International Trade in Goods
While there’s a full slate of data this week, developments around Iran and oil prices are likely to carry more weight on mortgage rates than any scheduled report.
Where are mortgage-backed securities this morning?
As of 9:10 a.m. Pacific, mortgage-backed securities are slightly improved — a positive sign tied to market optimism around a potential peace agreement with Iran.
Spotlight: HELOC for Seniors in Washington
This week I’m highlighting our Home Equity Line of Credit designed for seniors — a program built around the way seniors actually live and plan.
Here’s what makes it unique:
- Fixed rate at draw — your rate is locked in at the time you access your funds, so there are no surprises
- Interest-only payments throughout the 10-year draw period, keeping monthly obligations lower and giving you more flexibility
- No balloon payment as long as the senior lives in the home as their primary residence
If you or someone you love is 62 or older with home equity, this could be a powerful and flexible tool. Reach out and I’d love to walk you through whether it might be a good fit.
Have questions about buying, refinancing, or exploring your equity options? Let’s talk! — I’m always happy to help.
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