Hey, it's Abdel again with Got Mortgages. Every week I put together a centralized roadmap that pulls the housing and mortgage market into one clear picture, so you're not stitching together headlines, rate alerts, and economic releases trying to figure out what actually matters this week.Inside this update you'll find the full presentation breaking down what's moving and why, a workflow video that walks you through it step by step, an infographic with the week's key numbers at a glance, and supporting materials that connect the dots between rates, home sales, inventory, and the data driving it all.Whether you have a client that is buying, selling, refinancing, or helping clients navigate any of it, this is built to give you the clarity to act, not just react.The market update for May 2026 highlights a period of accelerating inflation alongside a modest uptick in the housing market, creating a complex environment for future interest rate decisionsInflation Surges, Home Sales Edge HigherThe May 18, 2026, market update highlights a significant surge in inflation alongside a modest rise in existing home sales. Headline consumer inflation reached 3.8% year-over-year in April, largely driven by rising food and energy costs, specifically gas and fuel prices related to the Iran conflict. Wholesale prices also showed substantial pressure, with the Producer Price Index jumping 1.4% for the month, nearly triple what was expected. These persistent inflationary pressures, coupled with a confirmed change in leadership as Kevin Warsh replaces Jerome Powell as Federal Reserve Chair, complicate the outlook for potential interest rate cuts. While the Fed is weighing signs of a slowing labor market, such as elevated continuing unemployment claims, the current high inflation supports keeping rates higher for longer.In the housing sector, existing home sales edged up 0.2% in April after a decline in March, and inventory increased by 5.8% to 1.47 million homes. Despite these improvements, the market remains undersupplied compared to historical norms, with the median home price sitting at $418,000. On the broader economic front, retail sales rose 0.5%, matching expectations, though higher fuel costs continue to ripple through the economy by increasing operating expenses across various categories. Technically, the market saw mortgage bonds end the week lower while the 10-year Treasury yield moved above key resistance levels. Looking ahead, the market will focus on upcoming reports regarding builder confidence, pending home sales, and the minutes from the Federal Reserve’s latest meeting.https://housing.link/FMlj16Tn
