- InGeniusly Speaking
- Posts
- Back & Forth
Back & Forth
By Jeff Walton & Kelly Guest
Table of Contents
Are we there yet? CrossCountry Mortgage raised its bid for TWO to $12/share; and now HW reports this morning that UWM raised again to $12.50 and tweaked some of the terms. It’ll be interesting to see when and where this ping pong ball lands. The same could be said for the situation in the Middle East, with the White House’s reaction to Iran’s latest proposal being that it is “totally unacceptable.” As the conflict continues, it’s a fair question to wonder what oil and mortgage rates have in common…Bill Bodnar explains in his latest Master the Markets segment.
CHATTER
April Jobs Commentary: MBA Chief Economist Mike Fratantoni
“The April employment report showed positive trends, with the unemployment rate steady at 4.3%, employment growth at a solid 115,000, and wage growth picking up to 3.6% at an annual rate. However, the three-month trend is not quite as strong, with job growth averaging only 48,000, including the net downward revisions to the job counts for the prior two months. And the job growth was concentrated in just a few sectors, including health care, social assistance, retail trade, and transportation.
“Other trends over the past year also paint a different picture. The labor force participation rate has declined from 62.6 to 61.8%. The labor force, the total number of people either employed or actively looking for work and counted as unemployed, has declined by more than 1 million. And the number of people employed has declined by more than 1.2 million. The U-6 measure, now at 8.2%, captures some of this shift in individuals leaving the labor force.
“All in, the job market is holding together reasonably well, but it is not as strong as the April headline would suggest. The implications are that there is not enough job market weakness to change the direction of Fed policy. MBA expects that the Fed will hold off on rate cuts for the foreseeable future, and there is enough concern about the labor market to keep at least some potential homebuyers hesitant about their own job situation."
Competitors Cooperating
Look Ma – We’re Sharing: Zillow & Realtor.com Featuring Each Other’s Pre-Market Listings
Starting this summer, Zillow Preview Listings also will be available as Realtor.com® Preview listings on Realtor.com®, bringing these pre-market homes to the two most-visited real estate platforms in the country. No special login. The same early access, available to everyone.
“The real estate market works best when every buyer has access to the same homes — nothing hidden, nothing reserved for a select few. That's Zillow's core belief. Zillow and Realtor.com® both are committed to the same principle: sellers deserve maximum exposure from day one, and buyers deserve visibility into every home available to them.” - Jeremy Wacksman, Zillow CEO
The move could be construed as an effort to avoid legal exposure.
MLS Policies Differ Nationwide – Adding to Confusion: HW
NAR is abdicating more control to local MLSs.
One big variable is the rules around “coming soon” listings – HW describes it as a patchwork. Industry is still finding itself post NAR settlement and practice changes and as multiple other suits work their way through the courts.
Zoning Out
Florida Firestorm: Law Overrides Local Zoning to Repurpose Idle Golf Courses HW
Golf courses would be converted to new housing amid affordability crisis. Lawsuits and challenges by owners angered by the disappearance of course views are expected.
HW reports a law similar in spirit (preempting local zoning laws) failed in CO.
Buydowns, HELOCs and Piggybacks, Oh My: UWM Rolls Out New Options
UWM will cover the cost of lender-paid temporary rate buydowns on conventional and government purchases by providing a credit to offset the buydown experience.
This gives borrowers a payment equivalent to a 1% lower interest rate in the first year at no additional cost to them or the broker, providing a lower monthly payment and easing the transition into homeownership, while helping brokers win new business and grow relationships. This free offering is available through June 30, 2026.
UWM also introduced home equity loans – one lump sum with a fixed rate and term. With multiple standalone and piggyback options now available, brokers will be able to choose the best fit for each of their borrowers.
Does AI Overshadow Poop on the Streets? Apparently in San Fran: Redfin
Luxury sales: +22.2% year over year
Median luxury price: $6.8 million, up 9%
Days on market: 12 days, down from 28
Share under contract within two weeks: nearly two-thirds
More on AI: AD Mortgage Broker Tech Survey 2026 reveals what’s working, missing, and wanted when it comes to tech, tools, and training.
MOVING & SHAKING
loanDepot named Phil Treadwell VP of Regional Production.
Edge Home Finance named Nathan Knottingham SVP of Education/VA Strategy - NMP
Union Home Mortgage appointed Newrez/Caliber alumni Dino Lack as Chief Information Officer.
Brokers First Funding announced a company rebrand and 25 bps non-QM purchase special.
Carrington announced a strategic partnership to advance the next generation of Ginnie Mae servicing technology by adopting ValonOS as its core servicing platform. It also acquires Valon Mortgage under the deal.
Mortgage Connect was warned by the FTC about broad use of non-compete agreements.
Click n' Close named Amy Azorandia Chief Compliance Officer.
MARKET/INDUSTRY
Mortgage Rates Average 6.37%: Freddie 5-7-26
Mortgage Applications Decreased 4.4% from One Week Earlier: MBA Weekly Survey for the week ending 5-1-26.
Eroding Equity
Lowest Since Q421: Home Equity Down in Q126 - ATTOM Data
43.3% of mortgaged residential properties in the country were equity-rich, meaning the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market value.
That was down from 44.6% in the previous quarter and marked the lowest rate of equity-rich residential properties since Q421.
Nationwide, 3.2% of mortgaged residential properties were considered seriously underwater in Q126; up from 3% in the previous quarter and 2.8% in Q125.
Not Budging
Nearly Half Staying Put: Point 2026 Moving & Sentiment Study
Nearly half (48%) of homeowners didn't consider moving at all in the last 12 months— up from 41% who said the same two years ago.
Around 29% of homeowners who canceled moving plans cited life circumstances — a job loss, a family situation, shifting caregiving obligations — as a reason, nearly double from 16% in 2024.
The share citing mortgage rates as a barrier fell to 45%, down from 55% two years ago, as weekly average rates declined nearly 100 basis points over the same period.
K-Shaped Sitch: TransUnion Q126 Credit Industry Insights Report
The US credit market is becoming increasingly K‑shaped, with super prime consumers gaining strength while non‑prime borrowers face mounting financial pressure.
Debt burdens and affordability stress are rising fastest among non‑prime consumers, even as overall credit conditions remain stable.
Lenders continue extending credit but are doing so with greater precision by balancing access with tighter risk controls.
One of the most impactful findings in the Q1 2026 CIIR is the continued reshaping of consumer risk tiers:
The super prime population has grown by roughly 15 million consumers since 2019, surpassing 40% of the credit‑active population.
Prime plus, prime and near prime segments have steadily declined, thinning the “middle” of the credit market.
Subprime share has begun rising again, approaching pre‑pandemic levels.
Simultaneous growth at the top and bottom of the credit spectrum underscores a widening gap between borrowers who can absorb higher costs and those facing mounting financial pressure.
Spotlights on DPA
DPA Increasingly Targeting Middle Class: HW + Q126 Homeownership Program Index: Down Payment Resource
Of the 2,679 homebuyer assistance programs nationwide:
77% are active and funded, consistent with the prior quarter
12% are inactive
5% have a waitlist for funding
6% are temporarily suspended
1,993 programs (74%) provide down payment or closing cost assistance, reinforcing their central role in addressing affordability challenges