Mortgage lock volume fell 5.4% in May as rates climbed, but declining pull-throughs suggest some borrowers are reconsidering loan plans amid ongoing rate volatility, Optimal Blue found.

The number identifying it as such is significant, but not universal, as servicers also face product-specific challenges and determine whether and how to use AI.

Zachary Carpenter, tapped to take over as Farmer Mac CEO in March 2027, will now take over the position on July 1, with Bradford Nordholm as CEO emeritus.

Bonds End at Strongest Levels

Unlike yesterday, which saw an uneventful open give way to intraday weakness, today’s momentum was mostly friendly. Bonds avoided panicking in the morning hours. Mid-day war-related headlines made for some quick 2-way trading in the noon hour, but yields never went any higher than the AM highs. After sorting out that volatility, steady gain brought yields to the lowest levels of the day in the final hour of trading. For context, this is right on the highest edge of the short-term range seen in the week and a half leading up to the jobs report. 

Econ Data / Events

NFIB Business Optimism Index (May)

95.3 vs 96.0 f’cast, 95.9 prev

ADP Employment Change Weekly

29K vs — f’cast, 35.75K prev

Trade Gap (Apr)

-55.90B vs $-56.1B f’cast, $-60.3B prev

Market Movement Recap

08:23 AM A hair stronger overnight. MBS up 1 tick (.03) and 10yr down 2bps at 4.543

01:38 PM MBS up 2 ticks and 10yr down 3.6bps at 4.528

04:15 PM MBS up 5 ticks (.16) and 10yr down 4.4bps at 4.52

Better and Coinbase plan to make the product available to qualified borrowers nationwide by this summer. Interested customers can currently apply to a waitlist.

Approximately 54% of homeowners looked to a second lien product to access their home’s stored value in the first quarter due to the “lock-in effect.”

A notable cyber threat actor alleged it was behind a ransomware attack that impacted nearly 138,000 individuals, a claim refuted by the lender.

Home sales rose 3.8% in May to 308,446, driven by a 2.8% jump in existing-home sales, which also reached their highest level since October 2022.

Brian Moynihan spoke of the challenges of developing and maintaining Erica, the bank’s main internal AI model, with precision.

Remember when talk of a “re-IPO” of Freddie and Fannie dominated residential lending news? That has certainly quieted, Pulte’s attentions are diverted, and you can certainly buy stock in them now: share prices for both are down about 30 percent this year so maybe they’re a bargain. For those new to the biz, the FHFA oversees F&F, and the FHFA’s Director is Bill Pulte who is not without his critics and videos why. Meanwhile, in more constructive videos and interviews, housing affordability dominates the conversation, but Pennymac CEO David Spector argues the real solutions extend far beyond mortgage rates. In a candid interview with Robbie Chrisman, Spector shares his views on housing supply, homeowner lock-in, regulatory reform, and how technology could fundamentally reshape the mortgage experience. Hear from a couple veteran LOs about how the lowest rate isn’t always the best mortgage advice and how the best mortgage solution isn’t always the obvious one. (Today’s podcast can be found here and this week’s ‘casts are sponsored by JazzX, the first true end-to-end AI platform built for mortgage. From application to underwriting, JazzX is a new operating model that helps you scale growth, boost productivity, and transform how your team performs. Hear an interview with Littler’s Colton Long on how employers are increasingly responding to employee departures with legal action over alleged non-solicitation, confidentiality, and trade secret violations.) Lender and Broker Products, Software, and Services