The Mortgage Porter Weekly – Mortgage Rates for the Week of May 18, 2026

Last Week in Review

Inflation remained elevated in April. Consumer prices rose 0.6% for the month and are up 3.8% year over year, driven largely by higher energy and food costs. Core inflation — which excludes food and energy — also came in hotter than expected, suggesting that underlying price pressures remain stubborn. On the wholesale side, producer prices jumped 1.4% in April and are running 6% above year-ago levels. The message is clear: price pressures are still sticky.

That keeps the Fed in a tough spot — balancing persistent inflation against signs of a cooling labor market. On that note, the Senate confirmed Kevin Warsh as the new Chair of the Federal Reserve, succeeding Jerome Powell. His first FOMC meeting is in June, and markets will be watching closely for any signals on the direction of interest rates.

On the housing front, existing home sales edged up 0.2% in April, while inventory rose nearly 6% from March. Supply remains below historical norms, but buyers are finding a bit more breathing room as bidding wars continue to ease.

The labor market is sending mixed signals: new jobless claims remain relatively low at around 211,000, while continuing claims held at 1.78 million — indicating it’s taking longer for workers to find new jobs. Retail sales rose 0.5% in April, showing consumers are still spending despite the uncertainty.

The dominant driver of bond market volatility right now is the ongoing conflict involving Iran and oil prices — and that’s likely to remain the case this week.

Mortgage Rates: Optimal Blue Index

According to the Optimal Blue Index, the average 30-year fixed rate as of Friday, May 15th was 6.499%.

A few important reminders:

• The Optimal Blue index reflects data from approximately 35% of mortgage transactions (lenders using their platform).
• You cannot lock in last Friday’s rate today.
• Your credit score, loan-to-value ratio, and other factors will affect the rate you personally qualify for.

This number is meant to give you a general sense of where rates are trending — not a quote.

Economic Calendar: Week of May 18, 2026

• Monday: NAHB Housing Market Index
• Tuesday: ADP Employment, Pending Home Sales
• Wednesday: 20-Year Treasury Auction, Fed Minutes
• Thursday: Jobless Claims, Housing Starts & Permits
• Friday: Consumer Sentiment

Next FOMC Rate Decision: June 17, 2026

While the economic calendar is full, these reports are likely to take a back seat to headlines around Iran and oil prices, which continue to drive most of the bond market movement.

In the Spotlight: The Buyers Pass

If you’re actively shopping for a home, make sure you have your Buyers Pass ready.

A Buyers Pass is a next-level preapproval letter — and here’s what sets it apart:

• Fully pre-underwritten — not just a quick pre-qualification
• Stored in your phone’s digital wallet for instant access at showings
• Includes your buyer’s agent’s information
• Features a short video introduction from me confirming your qualifications

This gives listing agents and sellers confidence that you’re a serious, qualified buyer — and it can make a real difference in a competitive market.

Ready to get your Buyers Pass? Contact me and I’ll get you set up.

Ready to talk through your mortgage options? I’m here to help — no pressure, no obligation.