Week in Review (5/22/2026)

Hi, this is Eric Montaghami with your weekly market update.

This week’s housing data showed a mixed picture for the market. Housing starts fell nearly 3% from March to April, driven mostly by a slowdown in single-family construction. At the same time, building permits, which can signal future construction activity, rose 5.8%, led primarily by multi-family projects.

Builder confidence also improved slightly in May, though sentiment remains below the growth threshold. According to the National Association of Home Builders, higher mortgage rates, rising gas prices, and ongoing economic uncertainty are still weighing on buyer demand.

There was some encouraging news on the resale side of the market. Pending home sales rose 1.4% in April, beating expectations and marking the third straight monthly increase. Compared to a year ago, pending sales were up 3.2%, suggesting buyers are still active despite affordability challenges.

Meanwhile, the latest Federal Reserve meeting minutes revealed growing disagreement among policymakers. Some officials continue to favor rate cuts if disinflation resumes or the labor market weakens, while a majority of participants said additional rate hikes could still be necessary if inflation remains persistently above 2%.

On the labor side, new unemployment claims remain relatively low, though the figure may not tell the full story of labor market stress. Some workers who lose jobs may be turning to freelance or gig work instead of applying for unemployment benefits. Continuing claims also stayed elevated, suggesting some job seekers are taking longer to find work.

If you’re thinking about buying, refinancing, or just have questions about the market, I’m always here to help.