WHAT'S IMPORTANT NOW
SPRING 2026
Week of May 17, 2026
The recent surge in mortgage rates has pushed the 30-year fixed rate above 6.5% once again, partly due to higher fuel costs combined with rising concerns over growing global public debt.
Given the higher cost of borrowing, many prospective homeowners are turning to adjustable-rate mortgages and other alternative lending options.
The share of adjustable-rate mortgages (ARMs) rose to nearly 10% of total applications, the highest since October 2025. ARMs are considered riskier because their rates reset after a fixed period. The average rate on a five-year ARM last week was 5.76%.
Borrowers are also turning to non-conforming loans which aren't underwritten by Fannie Mae and Freddie Mac, and may allow lenders to count income from outside traditional employment. These loans generally carry a higher interest rate for the borrower, but they offer an opportunity for home buyers who might not otherwise qualify for traditional loans and also appeal to investors buying homes to rent.
The share of mortgages using alternative lending practices is still a small portion of the market, but it has doubled in size over the past three years. These loans were nearly 6% of all home loan originations in 2025, the highest percentage since the housing crash two decades ago.
During all markets, but especially in volatile times, your business needs to ensure
it is being managed properly and conservatively to yield success today and for generations.
HedgeAdvisory can help through our proven proprietary hedging software
and consultative approach to managing risk.
Call us today at (410) 207-9907 to set up an appointment.
HedgeAdvisory
Real-Time Data
Real-Time Analytics
Better Loan Sale Decisioning
TM
The Volatile Rate Environment
With markets in flux, now is the time to utilize an active hedging strategy.
The Solution: HedgeAdvisor
Our hedging toolkit simplifies the hedging process through transparent, reliable, and accurate data reporting which will have you ready to hedge in just 30 days. Plus, no personally identifiable information (PII) is ever exchanged or transmitted.
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The Advantage: HedgeAdvisory Services
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Get the most revenue from the business you originate while maintaining safety and soundness
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Lead clients' efforts in submitting and obtaining agency approvals, agency set-up, committing, delivery, and securitization
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Transition clients from best efforts service-released to mandatory servicing-retained
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Assess clients' risk tolerances and provide risk-management strategies
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Create custom reporting for accounting, operations, production support, and agency securitizations
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Expand product offerings
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Devise hedging and loan sale strategies
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Design products and procedures for each client's needs
Our team works with you every step of the way to manage market fluctuations
Contact us at: (410) 207-9907