05/19/2026
We start the day today with bond yields still climbing as concerns around higher oil prices and inflation continue to drive the markets. Continued fears that the war in Iran will cause a lasting inflationary shock have sent bond yields higher than we have seen in quite some time. Many analysists are now thinking that central banks will be forced to keep interest rates higher for longer or even resume rate hikes to combat rising inflation. We are currently seeing the 10-year Treasury yield at 4.67%.
On the economic front, today is a light day for data releases, with only the pending home sales for April being released. We did see pending homes sales increase on a year over year basis by 3.3%, which was better than the prior month of 1.8%. On a month over month basis, pending home sales were up by 1.4%, which beat expectations of 1.0% as well. This report is being looked at with cautious optimism as rising mortgage rates could derail this continued growth in sales.
We want to remind everyone that there is an early market close on Friday, with markets closing early at 2 pm ET and we will have a full market close on Monday for the Memorial Day Holiday. The early market close will cause a lack of liquidity on Friday so be sure to keep that in mind as you are talking with borrowers about rate locks.
We started the day with the 10-year Treasury yield sitting at 4.599%, but that has since jumped higher and we are now at a 4.676 level.
If you have any questions, feel free to reach out!
Dan Conner
303-941-6211
This Market Update and similar such communications are for informational purposes only and are based on publicly available information. These materials are general communications, which are not impartial, and are provided solely for discussion purposes, and not in connection with any product or service offering. The opinions and views expressed in this Market Update are as of the date of this communication and are subject to change. Any forward-looking views and statements contained in this Market Update are based on current estimates or expectations of future events or results. Actual results may differ materially from those described in this Market Update. The views expressed in this communication should not be attributed to Guild Mortgage Company as a whole and may not be reflected in the strategies and products offered by Guild Mortgage Company.
