The April FOMC Meeting concluded with the Fed leaving interest rates unchanged, and it was the last under Jerome Powell’s chairmanship. Chair Powell is the first Fed Chairman to step down and remain on the Board since 1948 due to a) the Federal investigation regarding the cost of renovating the Fed’s Headquarters, and b) he probably wants to have a voice in keeping the Fed independent from presidents. Kevin Warsh is slated to be the next Fed Chairman, taking the helm on May 15th, and at this point most expect no changes from Fed policy until 2027. (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 nCino’s Chris Gufford on how AI is moving beyond hype to deliver measurable gains in mortgage operations, borrower experience, and loan officer productivity, while reshaping how forward-looking lenders reengineer their processes for the next phase of industry transformation.) Lender and Broker Products, Software, and Services A tailored suit fits because it was designed for you, not handed to you off the rack. Floify takes the same approach to the mortgage POS: configurable to how you actually lend, so LOs do more with less because the intelligence is already inside. Your loan types? Configured without code, no dev queue, no vendor delay. Built in. Your borrower data? Extracted, validated and pre-filled before an LO ever touches the file. Built in. Your workflows? Moving loans forward automatically, no manual nudges required. Built in. The result is an 84 percent increase in efficiency and loans reach clear-to-close 7.5 days faster across any loan type your team can dream up. Is your POS tailored for you, or are you the one making alterations to fit it? See it live. Your way. Built in. Ready when you are.

Mortgage rates rose somewhat sharply yesterday to match the highest level since March 27th. They’re just a hair higher today, thus officially at 6-week highs.  Whereas yesterday’s Consumer Price Index (CPI) didn’t have an obviously negative impact on rates, today’s Producer Price Index (PPI) did. Both are big inflation reports. CPI is typically much more likely to cause a reaction in rates, but PPI showed a much bigger surge in inflation this morning. Even then, the underlying bond market wasn’t too much worse by the end of the day and the mortgage-specific bond market actually made a full recovery. But that recovery was too gradual and shallow for the average lender to adjust their rates today. That left our rate index 0.01% higher day over day at 6.57% for a top tier 30yr fixed. [thirtyyearmortgagerates]

Builders Capital Exchange has a $2 billion multi-year annual funding commitment, while RCLCO Fund Advisors creates joint venture which will acquire communities.

More homes nationwide went under contract in April compared to last spring, while inventory growth, while cooler, is returning to average historical levels.

The 90-day-plus delinquency rate on student loans hit 10.3% in the first quarter, and New York Fed researchers warn that a second wave of defaults could be coming. Evidence is mixed regarding the likely impact on other consumer-lending segments.

The Mortgage Bankers Association’s Mortgage Credit Availability Index declined 0.4% to 107.9 in April after reaching a three-year high in March.

The blockchain-backed loan marketplace said it sees interest for purchase mortgages coming from existing partners after it reported a profitable start to 2026.

Highest Yields in 10 Months on War Headlines and Auction Concessions

Because CPI came out slightly higher today and because of its status as a bigger potential market mover, many rate watchers will assume that’s the reason 10yr yields closed at their highest level since last July. But bond yields were actually lower in the first 40 minutes post-CPI. It wasn’t until newswires cited Trump saying he’s in no hurry to end the war that yields began spiking (and stocks began selling). It’s also worth noting that yields were already up to 4.44% ahead of CPI and only moved 2bps higher by the close (i.e. not much intraday movement in the grand scheme). Could CPI have been a factor for some traders? Sure, but the majority of post-CPI volume suggests the data was largely taken in stride.

Econ Data / Events

m/m CORE CPI (Apr)

0.4% vs 0.3% f’cast, 0.2% prev

m/m Headline CPI (Apr)

0.6% vs 0.6% f’cast, 0.9% prev

y/y CORE CPI (Apr)

2.8% vs 2.7% f’cast, 2.6% prev

y/y Headline CPI (Apr)

3.8% vs 3.7% f’cast, 3.3% prev

Market Movement Recap

08:30 AM No major reaction to CPI. 10yr up 2.9bps at 4.438 and MBS are down only 2 ticks (.06).

09:39 AM MBS down 5 ticks (.16) and 10yr up 4.2bps at 4.451

02:03 PM Weakest levels. MBS down a quarter point and 10yr up 5.2bps at 4.461

This morning’s Consumer Price Index (CPI) came in slightly hotter than expected with core inflation running 2.8% annual vs 2.7% forecasts and overall inflation at 3.8% vs 3.7%. Bonds have traded both ways after the data, but after 20 minutes, yields were actually LOWER by a hair. What gives? We know traders are trading the data based on volume. The stalemate could have to do with core goods (a proxy for tariff-related inflation) moving lower. The Fed has called this category out as a prerequisite for considering rate cuts again. The rest of the data was less friendly but housing played an outsized role. This is actually better for the rate outlook because traders think housing will ultimately trend lower over time. That said, the non-housing metric (supercore, .454% monthly and 3.32% annually) remains far too high for a rate cut discussion to be on the table for the foreseeable future.

If you’re hoping that the summer is going to bring a trend of purchase market prosperity, I hope you’re right but there are indications otherwise. Rocket Companies’ CEO reported its highest profit in four years, but CEO Varun Krishna told investors that the company’s real-time data shows the spring homebuying season is not delivering the volume increase that historical patterns would suggest. The cost of war, oil prices, and homebuyer psychology are heavy (let’s hope temporary) weights. And Optimal Blue’s latest Market Advantage report finds mortgage lock activity cooling in April after a strong first quarter. Total rate-lock volume declined 9 percent month over month (though it was up 11 percent on a year-over-year basis). Purchase demand was down about 2 percent in March but up more than 9 percent from April 2025. (Refinance activity cooled more sharply, easing refi share of total production to just 23 percent.) (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. One of the major themes emerging from nSight 2026 this week is how lenders can move beyond traditional workflows through AI, intelligent automation, and connected lending experiences. Hear an interview with Truework’s Ethan Winchell on how rising income volatility is reshaping homebuyer eligibility and what lenders must do to adapt to a more complex and less predictable income landscape.) Lender and Broker Products, Software, and Services