Mortgage Rates This Week – May 14, 2026

Rates moved higher again this week. The 30-year fixed mortgage rate at the time of this post is 5.750%, with a 5.981% APR and 2.312 points, or 6.250% with a 6.288% APR and 0.255 points, for top-tier borrowers who put 25% down and have a credit score of 780 or higher. The 15-year fixed mortgage rate for the same category of borrowers is 5.125%, with a 5.470% APR and 2.081 points; or 5.750%, with a 5.790% APR and 0.107 points.

The 10-year Treasury yield climbed to 4.46% this week, near its highest level since June of last year, driven by two back-to-back inflation reports that came in well above expectations and pushed bond markets to price in the possibility of a Fed rate hike rather than cuts. Tuesday’s CPI report showed consumer prices rose 0.6% in April and 3.8% over the past year, the fastest annual pace since May 2023, with energy accounting for more than 40% of the monthly increase. But the report that rattled markets more was Wednesday’s PPI. Wholesale prices surged 1.4% for the month, the largest gain since March 2022, pushing the annual rate to 6.0%, the highest since December 2022. Core PPI, which strips out food and energy, jumped 1.0% for the month, against a 0.4% consensus estimate, and services wholesale prices rose 1.2%, the fastest pace since March 2022. That last number matters because service inflation doesn’t move with oil prices. It’s structural, not war-driven, and it tells you the inflation problem has spread well beyond the Strait of Hormuz.

The practical consequence: markets raised the odds of a Fed rate hike by year-end to roughly 28-39% following the two inflation reports. Three months ago, the debate was when the Fed would cut. Now there’s a meaningful chance the next move will be up. For mortgage rates, which track long-term bond yields rather than the federal funds rate directly, this shift in expectations is what’s keeping the 10-year elevated and limiting how much relief borrowers can get, even as oil prices bounce around week to week.

Friday’s April jobs report came in well above the 55,000 consensus estimate, with 115,000 payrolls added, and unemployment unchanged at 4.3%, representing the first back-to-back monthly payroll gains in nearly a year. Healthcare led with 37,000 new positions, while transportation and warehousing added 30,000, and retail contributed 22,000. The headline looked resilient, but the details were softer. The broader underemployment measure rose to 8.2%, with 445,000 more workers moving into involuntary part-time status in a single month, and the labor force participation rate fell to 61.8%, the lowest since October 2021. Average hourly earnings rose just 0.2% for the month and 3.6% annually, below the 0.3% and 3.8% forecasts, though that 3.6% is slightly above March’s 3.5%, meaning the wage deceleration that gave the Fed some comfort has now stalled. A labor market that looks solid on the headline while showing stress under the surface is precisely the environment where the Fed has no easy move: cutting risks reigniting inflation, hiking risks tipping a fragile jobs picture into something worse. Mortgage applications rose 1.7% for the week ending May 8, with purchase applications up 4% week-over-week and 7% above the same period last year. It’s a meaningful rebound after two consecutive weeks of declines. What makes the number notable is the context: the 30-year fixed rate was at 6.46% nationally, its highest level in five weeks, yet buyers came back anyway. Joel Kan of the MBA noted that potential homebuyers “shrugged off the current economic and mortgage rate uncertainties and returned to the market,” with increases across all loan types. The pattern throughout this spring has been consistent: demand is present, it softens when rates spike, and then rebuilds, and purchase activity is running ahead of last year’s pace, regardless of the weekly noise.

On the housing side, the April national existing home sales report was released on Monday, May 11, providing the first clear read on how buyers responded to the rate spike that followed the start of the Iran war in late February. The March data, 3.98 million annualized, 4.1 months of supply, median price of $408,800, remains the most recent national benchmark. In Washington state specifically, April NWMLS data showed active listings up 28.4% year-over-year with inventory climbing 23% from March alone, while closed sales declined 3.7% and the median price held flat at $650,000. More listings at stable prices with fewer transactions is the definition of a market shifting toward buyers, but affordability at current rates is keeping a ceiling on how much that shift translates into closed deals.

The next FOMC meeting is June 16-17, with Kevin Warsh officially named as the new Fed Chair. The committee is widely expected to hold again, but the language around the likelihood of a rate hike will be worth watching closely. Between now and then, the May CPI report on June 10 is the most important data point on the calendar. Economists are already projecting that wholesale inflation pressures from April’s PPI will filter through to the consumer level in May, with some forecasting CPI above 4% for the first time since 2023. If that happens, the case for any rate relief in 2026 effectively disappears.

Spring Buying Season

Purchase activity responds quickly to any rate improvement, indicating that buyers are there; they’re just watching the market closely. In Washington specifically, the jump in available inventory this spring means buyers have more options than at any point in the past several years, which changes the negotiating dynamic in many submarkets. In this environment, the difference between a fully underwritten pre-approval and a standard pre-qualification is real: sellers and listing agents notice, particularly when there’s competition. Rate buydowns and 7/1 ARM products are also worth modeling for buyers with a defined time horizon, as both can meaningfully lower the effective payment relative to where the 30-year fixed sits today.

Current Mortgage Rates This Week for WA, OR, ID, CA, and CO From Sammamish Mortgage
05/14/2026

**Conforming assumptions – $800k Purchase Price, 25% Down, 800+ Credit
**Jumbo assumptions – $1.5MM Purchase Price, 25% Down, 800+ Credit

Washington State mortgage rates

Mortgage rates In Oregon

Mortgage rates in Idaho

Mortgage Rates for Colorado

California Mortgage Rates

National Average Mortgage Rates:

(State-specific rates sourced from Sammamish Mortgage – National Average rates sourced from Zillow)

Consumer Price Index, Consumer Sentiment & Inflation

Inflation is undoubtedly the most significant driver of interest rates. With that in mind, we continue to focus on inflation data and expectations going forward to gauge what we can expect to see in interest rates in the coming months. Inflation is re-accelerating above the Fed’s target of 2% as of March 2026. While current inflation numbers would typically warrant a lower Fed Funds Rate, the Fed has indicated that it wants to see the impact of tariffs before considering additional rate cuts.

Consumer Price Index (CPI) March = 0.9% – Annual = 3.3%  

Producer Price Index (PPI) March = 0.5% – Annual = 4.0%

Personal Consumption Expenditures (PCE) February = 0.4% – Annual = 2.8% 

Overall, it is difficult to predict what will happen with mortgage rates in the near term. With global economic turmoil, banking issues, inflation, and thus far a far more resilient economy than many expected, trying to predict rates from one day to the next to time a rate lock is almost impossible or at least requires luck. However, looking at a longer time horizon, it’s much easier to see that there is an excellent chance we could see rates move lower from current levels, providing an opportunity for recent and existing buyers to potentially refinance in the future.

See Current Rates

What the Fed rate hike means for borrowers, savers, and investors

When the Federal Reserve raises interest rates, it affects various aspects of the economy, including the housing market, savings, and investment.

For potential homebuyers, a Fed rate hike typically leads to an increase in mortgage rates in the early stages of a tightening cycle; however, if the market thinks the Fed rate increases will hurt the economy and cause inflation to decrease, mortgage rates can improve when the Fed raises the Fed Funds Rate. It’s important to note that the Fed does not control mortgage rates. Fed rate increases do directly impact credit card rates, car loans, and commercial loans, which are shorter in duration than a typical 30-year fixed mortgage.

For savers, a Fed rate hike may lead to higher returns on savings accounts and certificates of deposit (CDs). In addition, banks and other financial institutions may increase the interest rates they pay to savers to remain competitive, which can benefit savers looking to earn more on their savings.

A Fed rate hike may impact the stock and bond markets for investors. Typically, when interest rates rise, the value of stocks and bonds can fall as investors may shift their money to fixed-income investments with higher returns. However, the impact of a rate hike on the markets can be complex and depends on various factors, such as the overall state of the economy, inflation expectations, and global events.

Loan Limits Increased For 2026

Loan limits have increased for 2026. Each county in every state has its loan limit. That said, the new standard conforming loan limit is $832,750, and high balance limits in select high-priced areas can go up as high as $1,063,750 for 1-unit properties in 2026.

Visit our 2026 conforming loan limit pages for Washington State, Oregon, Idaho, California, and Colorado.

For FHA loan limits, see our 2026 FHA pages for Washington State, Idaho, Colorado, California, and Oregon.

Check out our mortgage loan limit tool for conventional, FHA, and VA loans.

Instant Mortgage Rate Quote

Ready to Apply For a Mortgage?

Do you have questions about rates this week and home loans? Or are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, Colorado & California. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Our programs include the Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. Contact us today with any questions you have about mortgages.