Mortgage payments edge higher in April

Plus: Trump summons Fed's Powell, tells him he's making a mistake on rates

May 30, 2025

🌅 Happy Friday! Today's newsletter is 629 words, a 2.5-minute read. Let’s dive in…

Disclaimer: Average mortgage rates as of May 29, 2025. © MND Daily Rate Index.

1. Mortgage payments edge higher in April

Housing affordability slightly declined in April as the typical monthly mortgage payment increased to $2,186, up $13 from March, according to the Mortgage Bankers Association (MBA).

However, payments are still down 3.1% ($70) from a year ago. MBA's Payment Affordability Index (PAPI) dropped slightly to 163.0, indicating improved affordability annually due to a 4.8% increase in median earnings.

Economic uncertainty and high mortgage rates remain concerns, but moderating home prices and rising inventory may ease affordability pressure in coming months. States with the lowest affordability include Idaho, Nevada, Arizona, Utah, and Rhode Island.

2. Trump summons Fed's Powell, tells him he's making a mistake on rates

President Donald Trump pushed Federal Reserve Chair Jerome Powell to lower interest rates at their first in-person meeting since the president’s inauguration, the White House said.

The president told Powell that he believes the Fed chair is making a mistake by not lowering rates, White House Press Secretary Karoline Leavitt said at a briefing Thursday.

That “is putting us at an economic disadvantage to China and other countries, and the president’s been very vocal about that, both publicly and, now I can reveal, privately,” she added.

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3. More Nuggets

🤝 Supreme Lending to acquire Michigan Mutual. (HousingWire)

🆕 Mortgage firms reframe DEI amid policy shift. (National Mortgage News)

🚨 Fmr. Ginnie Mae COO on privatizing Fannie Mae and Freddie Mac: Congress needs to be involved. (CNBC)

📰 CHLA offers support for Pulte’s position on FICO pricing. (CHLA)

📝 UWM will offer 5/1 ARMs for FHA and VA loans. (UWM)

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4. Mortgage applications rise despite third straight week of rate increases

Mortgage rates recently climbed for the third consecutive week, reaching their highest point since January at 6.98%, yet homebuyers remained active, pushing mortgage applications up by 2% from the previous week and 18% compared to the same period last year.

Rising housing inventory supported this increased purchase activity despite economic uncertainties. Conversely, refinance applications declined by 7% weekly but still exceeded last year's levels by 37%.

Following a recent report showing stronger-than-expected consumer confidence but concerns about labor market conditions, mortgage rates slightly dipped at the start of the current week.

5. Ex-attorney pleads guilty to $800K fraud involving reverse mortgage scam

Former Washington state attorney Colby Parks pleaded guilty to wire fraud after embezzling over $800,000 from a disabled client, partly by misusing funds obtained through a reverse mortgage.

Parks served as trustee of a $1.66 million account intended to cover the victim's medical expenses following an accident, but siphoned the money into personal accounts, leaving the victim nearly destitute.

Parks encouraged the victim to take out a reverse mortgage in 2018, further draining those proceeds. His theft ultimately forced the victim to sell her home. The DOJ seeks up to 33 months in prison, with sentencing set for August 29.

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

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