Existing-home sales edged slightly higher in April, stabilizing after March’s decline as improving affordability and increased inventory provided modest support for buyers. Sales increased 0.2% to a seasonally adjusted annual rate of 4.02 million , matching the pace seen one year ago. “Despite mixed macroeconomic signals—including a record-high stock market and historically low consumer confidence—home sales were modestly boosted by the continued improvement in housing affordability,” said NAR Chief Economist Lawrence Yun. He also noted that mortgage rates remain lower than a year ago while income growth continues to outpace home price appreciation. Inventory continued to improve in April, though supply remains relatively constrained by historical standards. Total housing inventory climbed to 1.47 million units , up 5.8% from March and 1.4% higher than a year ago, representing a 4.4-month supply of homes. “Inventory still remains tight,” Yun said, adding that multiple offers are still occurring in some markets even as buyers take more time to make purchasing decisions. Home prices continued to move higher nationally, though appreciation remained relatively modest. The median existing-home price increased to $417,700 , up 0.9% year-over-year and marking the 34th consecutive month of annual price gains. Affordability improved compared to last year across all regions. The Housing Affordability Index registered at 110.6 in April, up from 101.4 one year earlier, reflecting the combination of slower home price growth, easing rates, and stronger household incomes.

Refinance activity continued to recover in the first quarter of 2026, but mortgage servicers retained a smaller share of borrowers despite the stronger lending environment, according to the latest ICE Mortgage Monitor. ICE estimated that roughly 585,000 first-lien refinances totaling $242 billion closed during the quarter, up from a revised 550,000 loans and $234 billion in the fourth quarter of 2025. Refinance volume more than doubled compared with the same period last year and reached its highest quarterly level since early 2022. Refinances accounted for nearly 44% of all mortgage originations in the first quarter, the highest share in four years. Rate-and-term refinances represented 60% of overall refinance activity, marking a five-year high as lower mortgage rates improved borrower incentive. Even with refinance activity gaining momentum, servicer retention weakened during the quarter. ICE reported that servicers retained 32% of refinancing borrowers, down from 35% in the prior quarter. Retention among rate-and-term refinances fell from 42% to 37% . It should certainly be noted that, although retention moved lower in the most recent quarter, overall levels are still the highest in years and that rate/term refis, in particular, have ramped up steadily over the past 3 years.

Mortgage applications increased modestly last week, as stronger purchase activity more than offset a slight decline in refinances. The Mortgage Bankers Association (MBA) reported a 1.7% increase in total application volume on a seasonally adjusted basis for the week ending May 8. The gain was driven entirely by home purchase demand, which continued to show resilience despite mortgage rates remaining near recent highs. The seasonally adjusted Purchase Index increased 4% from the prior week and was 7% higher than the same week one year ago. Refinance activity, meanwhile, edged lower. The Refinance Index declined 1% week over week but remained 28% above year-ago levels. Even so, refinance share slipped to its lowest point since July 2025, reflecting the limited incentive for many borrowers to refinance at current rate levels. The average 30-year fixed mortgage rate increased slightly to 6.46% from 6.45%, marking the highest level in five weeks. Despite the uptick, purchase demand improved across all major loan categories. Note: this data was collected before the rate spike at the end of the week (captured in MND’s daily rate index) MBA’s Joel Kan said, ” Purchase applications were higher over the week and 7 percent ahead of last year’s pace, with all loan types showing increases in purchase activity, as potential homebuyers shrugged off the current economic and mortgage rate uncertainties and returned to the market. “

The retail giant added a pro-rated dividend for TWO stockholders that would deliver a cash value potentially greater than UWM’s latest offer.

Post-pandemic rule changes also have driven the Department of Veterans Affairs’ number higher too but not as much as the Federal Housing Administration’s.

Foreclosure filings were reported on 42,430 properties in the United States last month, down 8% from the month prior but up 18% from a year ago.

While Freddie Mac’s weekly data found the 30-year average inching lower, 10-year Treasurys swung in the other direction after this week’s economic release.

House lawmakers modified a ban on big-money investors from purchasing single-family homes, broadening the exemptions for build-to-rent properties and eliminating requirements in a Senate version of the bill that affected investors divest their holdings.

Rally Reverses, Leaving Bonds Weaker in The Afternoon

The day began with promise, but devolved into yet another disappointment. After being almost a quarter point higher at 10am, MBS slid to an eighth point loss by the close. 10yr yields were as low as 4.44% early but were as high as 4.48% in the final hour of trading. Just as frustrating as the weakness is the fact that there’s no discrete scapegoat in the news or data. That said, oil prices were also moving higher during the bond sell-off. Given the absence of war-related headlines, some traders could be getting antsy due to a lack of progress in the first of Trump and Xi’s 2 day meeting. Ahead of the event, there was some speculation that it would be a venue to announce a peace deal.

Econ Data / Events

Continued Claims (May)/02

1782.0K vs 1790K f’cast, 1766K prev

Import prices mm (Apr)

1.9% vs 1.0% f’cast, 0.8% prev

Jobless Claims (May)/09

211.0K vs 205K f’cast, 200K prev

Retail Sales (Apr)

0.5% vs 0.5% f’cast, 1.7% prev

Retail Sales Control Group MoM (Apr)

0.5% vs 0.4% f’cast, 0.7% prev

Market Movement Recap

08:30 AM No drama in Retail Sales data. MBS up an eighth and 10yr down 1.8bps at 4.446

11:06 AM Minimal change so far. MBS up an eighth and 10yr down 1.2bps at 4.452

02:26 PM MBS up 2 ticks (.06) on the day, down just over an eighth from the AM highs. 10yr yields are still down 1bp on the day at 4.455

03:25 PM Weakest levels of the day with 10yr now up 0.1bps at 4.465. MBS are still up 1 tick (.03).

04:19 PM More selling. MBS down 3 ticks (.09) and 10yr up 1.9nps at 4.484

How do you go about trying to run your company’s AI efforts without knowing the rules? Testing suggests Google’s AI overviews tells millions of lies per hour. Colorado rewrote its landmark AI law: “Unpacking SB 26-189 and what it means for businesses” described by Ballard Spahr. AI, recapture, and capital markets were one of the topics in yesterday’s Capital Markets Wrap. Certainly, companies in our biz are grappling with the AI influence on the manufacturing process, and using it for guideline questions, is something on which many lenders are ruminating. (Today’s podcast can be found here and this week’s ‘casts are sponsored by nCino, and its Mortgage Suite that supports a modern homeownership journey. This week at nSight 2026, mortgage leaders will explore how AI, intelligent automation, and connected experiences are reshaping lending operations and borrower engagement. Hear an interview with Flex’s Ryan Metcalf on how financial fragility is reshaping the foundation of homeownership demand, challenging traditional credit models, and forcing lenders and policymakers to rethink risk, readiness, and the role of demand-side solutions.) Lender and Broker Products, Software, and Services Operational risk in bankruptcy servicing rarely comes from a single catastrophic failure. More often, it emerges from small breakdowns in coordination across timelines, systems, and compliance obligations. Most servicing organizations have the policy knowledge to manage bankruptcy. What’s harder to build is the workflow infrastructure to manage it consistently, at volume, without depending on institutional memory or manual intervention at every critical juncture. In CLARIFIRE®’s latest blog, “Why Bankruptcy Workflows Continue to Challenge Mortgage Servicers,” we examine the specific workflow gaps that rising bankruptcy volume tends to expose, from automatic stay response windows and proof of claim accuracy to Rule 3002.1 compliance and post-discharge reconciliation, and the value a rules-based approach can provide. If bankruptcy servicing is on your radar for 2026, it is worth the read.