Weekly Mortgage & Market Update

Week of June 8, 2026 in Review

Higher energy and gasoline costs pushed inflation higher in May, while existing home sales reached their strongest pace of 2026.

Higher Energy Costs Fuel Inflation

Consumer prices rose 0.5% in May and 4.2% year over year, with much of the increase driven by higher gas and fuel costs tied to ongoing tensions in the Middle East.

Excluding food and energy, core inflation increased 0.2% in May and 2.9% annually.

At the wholesale level, the Producer Price Index (PPI) rose 1.1% for the month and 6.5% year over year, again largely due to higher energy costs. Core wholesale prices increased 0.4% in May and 4.9% annually.

After three rate cuts late last year, the Federal Reserve has held the benchmark Fed Funds Rate steady throughout 2026. While the Fed does not directly set mortgage rates, its policy decisions play a major role in shaping borrowing costs across the economy.

Investors will be watching this week's Federal Reserve meeting—the first led by new Fed Chair Kevin Warsh—for clues about future rate decisions.

Home Sales Post Strongest Pace of 2026

Existing home sales rose 3.2% from April to a seasonally adjusted annual rate of 4.17 million homes in May, marking the second straight monthly increase and the strongest pace since December.

Housing inventory increased 3.3% month over month to 1.55 million homes and remains slightly above year-ago levels.

NAR Chief Economist Lawrence Yun noted that improving affordability has helped support the market, with mortgage rates remaining lower than a year ago and close to their long-term historical average.

Jobless Claims in Focus

New unemployment claims increased for a third consecutive week to approximately 229,000. While still relatively low by historical standards, some displaced workers may be choosing freelance, contract, or gig work rather than filing for unemployment benefits.

Continuing unemployment claims remained elevated at 1.795 million, suggesting many unemployed workers are spending more time searching for their next opportunity.

Family Hack of the Week

Celebrate National Fudge Day on June 16 with this Cinnamon Chocolate Fudge recipe from Food Network. The recipe yields approximately 4 to 6 servings.

Line a buttered 8-by-8-inch baking pan with parchment paper.

Combine one 14-ounce can sweetened condensed milk, 2 teaspoons cinnamon, and 1 teaspoon vanilla extract. Stir in 2 cups bittersweet chocolate chips and 3 tablespoons room-temperature unsalted butter.

Place over barely simmering water and stir until smooth and glossy, about 6 to 8 minutes. Pour into the prepared pan, smooth the top, and lightly sprinkle with kosher or flaky salt.

Refrigerate for at least 2 hours until firm. Cut into 1-inch squares and store refrigerated in an airtight container.

What to Look for This Week

The Federal Reserve meeting begins Tuesday, marking the first under new Fed Chair Kevin Warsh. Investors will be closely watching Wednesday afternoon's policy announcement and press conference for clues about interest rates and the economy.

Key reports this week include Home Builder Confidence on Monday, Housing Starts and New Construction data on Tuesday, Pending Home Sales and Retail Sales on Wednesday, and weekly jobless claims on Thursday.

SOURCE: MBSHighway