Buyers are shrugging off higher rates — for now

Plus: Lenders had a solid Q1 — but Q2 is looking cloudier

May 13, 2026

🌞 Buongiorno. Let's get to it. Today’s newsletter is 647 words, a 2.5-minute read.

Disclaimer: Average mortgage rates as of May 12, 2026. © MND Daily Rate Index.

1. Buyers are shrugging off higher rates — for now

The 30-year fixed rate hit 6.46% last week — the highest in five weeks — but purchase apps still rose 4% and are 7% above year-ago levels.

NAR's Lawrence Yun said agents are reporting a surge in buyer demand in just the last few weeks, suggesting the spring market is finally finding its footing. Refi apps slipped 1% and the refi share fell to just over 40% — the lowest since July 2025.

Rates have moved another 14 basis points higher to start this week on hotter-than-expected inflation data and dimmer Iran war resolution hopes, which could test buyers' resolve heading into the heart of the spring market.

2. Mortgage credit availability falls for the first time this year

MBA's Mortgage Credit Availability Index dipped 0.4% to 107.9 in April after hitting a three-year high of 108.3 in March.

  • The pullback was driven by lenders tightening conventional programs with high LTV and low credit requirements, and a 1% drop in jumbo availability after three months of gains.

  • Non-QM was the one bright spot, posting a small increase as that segment continues to grow. Government loan availability was unchanged.

Credit availability remains tight by historical standards, and with rates back up after briefly falling to 6.23%, the conditions that drove tightening aren't going away anytime soon.

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3. More Nuggets

📊 Supreme Lending brings on $100M Lasso Lending team in Houston. (HousingWire)

🤝 Clear Capital acquires Restb.ai for AI property intelligence. (Pulse)

🆕 KW, HomeServices of America adopt Cotality's new launch listing platform. (SFA)

⚖️ Zillow alleges MRED, Compass conspired over private listings. (Zillow)

📰 Freedom Mortgage settles FLSA suit with call center workers. (NMN)

4. Lenders had a solid Q1 — but Q2 is looking cloudier

Several large lenders posted strong Q1 profits, aided by mortgage rates that were roughly 50 basis points lower than they are today.

Rocket delivered its strongest profit in four years. UWM called it their second-best quarter ever. Newrez reported pretax operating income of $273.7 million, up from Q4. But all of them are tempering expectations heading into Q2, with Rocket's CEO noting the Iran war "changed some of the trajectory" as rates moved back up.

The product pivot is clear: lenders are pushing HELOCs hard as refis stall. Ther are also prioritizing cost controls and pricing discipline over raw origination volume growth. Better said HELOC gain-on-sale margins run 6-7% versus roughly 2.5% on direct-to-consumer mortgages.

5. Inflation spikes to 3.8 percent in April

The annual inflation rate shot higher in April as the war in Iran drove up energy and food prices, according to data released Tuesday by the Labor Department.

The consumer price index (CPI), a popular gauge of inflation, rose 3.8 percent over the past 12 months and 0.6 percent in April alone, according to the new Labor Department data.

Economists expected the annual inflation rate to rise to 3.7 percent, according to consensus estimates, after hitting 3.3 percent in March.

“There is a real financial squeeze underway. For the first time in three years, inflation is eating up all wage gains, this is a setback for middle-class and lower-income households and they know it. They are having to cut back on spending and stretch every dollar.” said Heather Long, chief economist at Navy Federal Credit Union.

☀️ You’re all caught up. See you on Friday!

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