05/29/2026
Your weekly economic update is here. Here is what you need to know:
• Mortgage rates moved slightly higher last week, increasing by two basis points according to the Freddie Mac Primary Mortgage Market Survey as of May 28. While rates have been trending upward since late April, they remain lower than this time last year. The continued rise in pending home sales suggests buyers are still engaged and may be ready to move when affordability improves.
• Mortgage application activity pulled back last week, with applications decreasing 8.5% according to the Mortgage Bankers Association. Refinance activity saw the biggest impact as rates reached their highest level since August 2025, while purchase applications softened slightly across loan types. Even with the weekly decline, purchase demand remains stronger than last year, showing continued interest from buyers.
• Inflation picked up in April, with the PCE price index rising at its fastest pace in three years. Higher energy prices tied to the ongoing conflict with Iran added pressure, creating a more difficult environment for the Federal Reserve. While the Fed cannot directly solve supply-related price shocks, persistent inflation could influence expectations around future rate decisions.
• Home price growth continued to slow heading into the spring market, with the Case-Shiller Index showing only a 0.7% annual increase in March. Monthly prices dipped slightly after seasonal adjustment, reflecting a housing market with limited momentum. For buyers, this slower price appreciation may create opportunities, while sellers may need to stay realistic in today’s more balanced environment.
Explore more mortgage insights, housing updates, and market trends on our website https://tinyurl.com/ysa2mccu