Rates dip to 6.57% but buyers keep pulling back

Plus: CoStar is buying Zonda for $800M

June 03, 2026

👋 Well, hello, Wednesday — Today’s newsletter is 820 words, a 3.5-minute read.

Disclaimer: Average mortgage rates as of June 02, 2026. © MND Daily Rate Index.

1. Rates dip to 6.57% but buyers keep pulling back

The 30-year fixed rate fell to 6.57% last week on easing energy prices tied to Iran war developments, but it wasn't enough to reverse the demand slide.

Purchase apps dropped 3% to the slowest pace since April, and refi apps fell 2% to their slowest pace since last June. Total volume was down 2.5% for the week.

ARM demand also eased — a sign that consumers are less urgently seeking rate relief than when rates were climbing sharply.

Friday's jobs report is the next potential market mover, with bonds holding in a narrow range so far this week.

2. CoStar is buying Zonda for $800M

On Friday, CoStar announced that it had entered into a definitive agreement to acquire Zonda for $800 million in cash from private equity firm MidOcean Partners.

The acquisition gives CoStar access to Zonda's builder-focused data platform, which serves more than 3,000 customers. It also adds Zonda's consumer-facing marketplaces, including NewHomeSource and Livabl, which specialize in marketing newly built homes.

"Zonda has built an extraordinary business with deep relationships across the homebuilding industry and one of the most valuable proprietary datasets in new home real estate," said Andy Florance, CEO, CoStar Group. "This acquisition strengthens our ability to provide clients with comprehensive information solutions across every major real estate segment."

A MESSAGE FROM COTALITY

80% of borrowers will do their next loan with someone else. Don’t let your business walk to another lender

It’s a lot cheaper to keep clients than it is to find new ones. Just a 5% increase in retention can boost your profits over 25%.

OneHomeowner is Cotality’s answer to the customer retention dilemma. Delivered on our Araya platform, OneHomeowner helps you drive smarter prospecting and better borrower engagement to increase client retention.

Modern brokers need modern technology that’s built for them. Find high-intent borrowers, close more deals, and stay top of mind beyond closing.

3. More Nuggets

🤖 Plaza Home Mortgage discloses data breach affecting customers, employees. (FinanceShield)

🚀 Rocket Pro launches $100K broker tech pitch contest. (Rocket Pro)

🆕 Trump picks FHFA’s Pulte to head national intelligence, GOP senators balk. (The Hill)

🏘️ National homeownership month highlights challenges facing homebuyers. (NMP)

📉 Mortgage application fraud risk fell 9.3% in Q1 2026. (Cotality)

4. VA finalizes partial claim program to help veterans avoid foreclosure

The VA has finalized a new loss mitigation option that allows delinquent VA borrowers to bring their mortgages current by placing missed payments into a subordinate lien — repaid when the home is sold or refinanced — without increasing their monthly payment.

The final rule removed a controversial provision from the original proposal that would have allowed certain modifications to raise a borrower's monthly payment by up to 15%.

Servicers can begin submitting trial payment plans June 15 and have until November 28 to update their systems. The change brings VA loss mitigation tools in line with what FHA and GSE borrowers already have access to.

5. New AI home search tool built with Google

Realtor.com has launched RealAssist AI, a conversational home search platform built with Google that lets buyers describe their finances, commute needs, and lifestyle goals in natural language and receive personalized property recommendations.

The Google Maps integration adds real-world context: commute times by time of day, nearby amenities, and neighborhood visuals at different times of day and seasons. The platform remembers previous conversations and syncs across devices.

For loan officers, the bigger story is where this sits in the funnel. Questions like "how much house can I afford?" have historically been entry points to lender conversations. RealAssist AI is designed to answer those questions before a borrower ever reaches a loan officer.

A MESSAGE FROM COTALITY

80% of borrowers will do their next loan with someone else. Don’t let your business walk to another lender

It’s a lot cheaper to keep clients than it is to find new ones. Just a 5% increase in retention can boost your profits over 25%.

OneHomeowner is Cotality’s answer to the customer retention dilemma. Delivered on our Araya platform, OneHomeowner helps you drive smarter prospecting and better borrower engagement to increase client retention.

Modern brokers need modern technology that’s built for them. Find high-intent borrowers, close more deals, and stay top of mind beyond closing.

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

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