Mortgage Rates This Week – May 7, 2026

Rates are slightly lower than last week’s peak but remain elevated and volatile. The 30-year fixed mortgage rate at the time of this post is 5.625%, with a 5.846% APR and 2.225 points, or 6.250% with a 6.277% APR and 0.133 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 5.000%, with a 5.377% APR and 2.291 points; or 5.625%, with a 5.697% APR and 0.312 points.

The 10-year Treasury yield dropped to 4.35% mid-week, about 10 basis points below the nine-month high it hit on Monday, as oil prices plunged on reports that the U.S. was nearing a preliminary agreement with Iran to halt the war. That brought modest relief to mortgage rates, but it’s the same pattern we’ve seen since February: any hint of a deal sends oil and yields lower, then the deal stalls, and both bounce back. U.S. crude plunged as much as 15% to $88 per barrel on Wednesday amid reports of the deal, but Trump said in an interview it was “too soon” to sign anything, and prices recovered from the lows. Brent had surged above $126 a barrel at the end of April, its highest level since Russia’s full-scale invasion of Ukraine, before this week’s pullback. With the Strait of Hormuz still effectively closed and talks unresolved, any rate improvement tied to deal optimism remains fragile.

The underlying inflation picture hasn’t changed. Last week’s PCE report showed the Fed’s preferred inflation gauge at 3.5% year-over-year in March, up from 2.8% in February, with core PCE accelerating to 3.2% – moving in the wrong direction. Q1 GDP came in at 2.0% annualized, below the 2.3% consensus. That combination is decent but unimpressive growth, re-accelerating inflation leaves the Fed with no room to ease, which is why long-term yields and mortgage rates have stayed structurally elevated even as oil prices bounce around day to day.

The FOMC held rates at 3.50%-3.75% last week in a vote that was anything but routine. The committee split 8-4, the most dissents since October 1992. Three members, Hammack, Kashkari, and Logan, voted to hold but opposed keeping any easing bias in the statement, signaling they’re not comfortable implying future cuts while inflation is running where it is. Miran dissented the other way, preferring a 25-basis-point cut immediately. Powell also announced he’ll remain on the Board of Governors after his chairmanship ends on May 15, meaning incoming chair Kevin Warsh won’t shift the committee’s balance as markets had assumed. The practical message from last week’s meeting: the Fed is not moving anytime soon, and several of its most influential members think even the suggestion of future cuts is premature.

Mortgage applications fell 4.4% for the week ending May 1, with purchase applications down 4% and refinances down 5%, directly reversing the surge from two weeks earlier when rates briefly improved on ceasefire optimism. The pattern is instructive: demand activates when rates dip and retreats when they rise, which is why the week-to-week swings in application volume have been so pronounced this spring. Despite the weekly decline, purchase activity remains above last year’s pace, indicating the buyer pool is there; it’s just highly sensitive to where rates land.

On the housing side, the March national data remains the most recent released: existing home sales at 3.98 million annualized, inventory at 4.1 months of supply, median price at $408,800. The April national report won’t be released until May 11. But April data from the Northwest Multiple Listing Service. Active listings in the NWMLS service area rose 28.4% year-over-year in April, with inventory up more than 23% from March alone as the spring market gained momentum. Closed sales declined 3.7% year-over-year, and the median sales price held flat at $650,000, unchanged from April 2025. More inventory at flat prices and fewer closed transactions define a market where buyers have more leverage than a year ago, but affordability constraints are keeping demand suppressed.

Tomorrow’s April jobs report is the next major catalyst for rates. Forecasts range widely from 55,000 to 165,000 jobs added, reflecting genuine uncertainty about how the Iran war and elevated energy prices are feeding through to hiring decisions. A soft print would give bond markets a reason to rally and could push mortgage rates lower heading into next week. A strong beat, particularly if paired with wage growth above 3.5%, would reignite concerns about sticky inflation and likely push yields back toward the highs we saw on Monday. Anyone floating a rate right now should be watching the 5:30 AM PST release closely.

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
05/07/2026

**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.