Welcome to my May newsletter, with an update on the latest April jobs report, what is happening in the bond market as mortgage rates continue to move around, and what we are seeing right now in the Los Angeles housing market as spring activity builds.
Mortgage Rates April 2026
Mortgage rates are holding in the mid 6s and moved slightly higher this week. The 30-year fixed-rate mortgage averaged 6.37% as of May 7, up from 6.30% the prior week, but still below last year’s level.
It is worth noting that rates have actually shown real resilience this spring. While geopolitical developments, including the conflict in the Middle East, initially pushed rates higher, the partial ceasefire that took hold in April helped calm bond markets and pull rates back down from their peak. That is a reminder that this market can move quickly in both directions, and that buyers who are ready to act can still find meaningful windows of opportunity.
The April jobs report showed the labor market is still holding up better than expected, even if momentum is slowing. Payrolls rose by 115,000, unemployment held at 4.3%, and average hourly earnings increased 0.2% month over month and 3.6% year over year. This is a labor market that is cooling just enough to keep the Fed patient, while still supporting consumer confidence and housing demand.
Here’s where local interest rates stand this week:
• 5.25% on 7YR jumbo ARMs up to $5M with full income documentation, depending on loan-to-value and credit.
• 5.5% on 10YR jumbo ARMs up to $5M with full documentation, again varying by structure and profile.
• Bank-statement loans for self-employed borrowers are generally still in the mid 6% range, reflecting the added underwriting complexity but giving buyers flexibility when tax returns don’t tell the whole income story.
For borrowers, the takeaway is simple: this is still a workable rate environment, but it is not one where you want to wait around for the perfect headline. Flexibility still matters, and ARMs continue to make sense for clients who want lower starting payments and may refinance later if rates ease.
Why Mortgage Rates Are Sticking
Mortgage rates are not reacting to one economic episode. The bond market is balancing Fed expectations, inflation risk, and the broader geopolitical backdrop, most notably the ongoing situation in the Middle East. When oil prices rise due to regional conflict, inflation expectations tend to follow, and that puts upward pressure on Treasury yields and, in turn, mortgage rates. The good news is that bond markets have shown they can respond quickly when tensions ease. We saw that clearly in April, when ceasefire developments pulled the 10-year Treasury yield lower and gave rates some breathing room.
Looking ahead, the May 12 Consumer Price Index (CPI) report is one of the most important data points of the month. If inflation shows meaningful deceleration, that could open the door for bond yields, and mortgage rates to drift lower heading into summer. April’s jobs data was solid enough to keep recession talk in check, but not strong enough to push rate expectations sharply higher. That keeps rates in a narrow range, even if they are not dropping as fast as many buyers would like.
Los Angeles Housing: More Supply, More Caution
Los Angeles remains expensive, but the market is no longer running hot. The Los Angeles market currently has a median list price of $1,150,000, with active listings up 4.3% year over year to 11,484. Supply is improving, but desirable, fresh inventory is still limited.
That matches what I’m hearing on the ground: buyers are cautious, and sellers are still trying to reconcile yesterday’s expectations with today’s market. Deals are getting harder to hold together because buyers do not want to overpay and sellers do not want to leave money on the table. The market is still moving, but it is more fragile than it looks from the outside.
This is when the right lender relationship matters most, especially one that can keep a pre-approval intact when the deal gets more complicated.
Recently Closed Loans April 2026
New Home Purchase | Hancock Park | $3.5M
85% LTV financing
Non-QM loan
6.875% interest rate | 6.995% APR
Bank statements told the story tax returns couldn’t. We secured high-leverage financing for this self-employed borrower, no tax returns required and closed in 25 days.
New Home Purchase | Valley Village | $2.37M
90% LTV financing
10/1 ARM
5.93% interest rate | 6.05% APR
Two major banks said no. We got it done and closed in 17 days. High-leverage physician loan, no PMI, 7-day approval.
Cash-Out Refinance | Santa Barbara | $7.2M
70% LTV financing
30YR fixed rate loan, 10YR interest-only
6.625% interest rate | 6.745% APR
$4.32M cash-out refinance for a self-employed borrower, qualified on bank statements alone, no tax returns required.
New Home Purchase | Huntington Beach | $3.74M
85% LTV financing
10YR ARM
5.375% interest rate | 5.495% APR
Only one year self-employed, a profile most banks decline. We closed in 25 days, no points, no tax returns required.
New Home Purchase | Camarillo | $2.4M
75% LTV financing
30YR fixed rate Non-QM loan
6.75% interest rate | 6.87% APR
Three months into a new venture, same industry, proven track record. We qualified this borrower on prior financials, no tax returns required.
Condo Purchase | Brentwood | $1.545M
95% LTV financing
5YR ARM
5.375% interest rate | 5.495% APR
Exceptional rate secured for a high-leverage borrower.
Key Dates This Month
For clients and agents watching the calendar, several May dates will help shape the housing market conversation:
May 11 – Existing Home Sales
May 12 – Consumer Price Index (CPI) key rate catalyst
May 21 – Building Permits, Housing Starts
May 28 – New Home Sales
How I Can Help You This Month
As we move through May, we are in a market shaped by a Fed that is still patient, mortgage rates that are sticky but responsive to the right data, and a housing market that is slowly rebalancing. That mix rewards planning over waiting.
It’s a good time to:
•Get fully pre-approved and update the approval every 30 days so you can move quickly when the right property appears.
•Compare fixed-rate and ARM options and decide how much rate risk you actually want to take.
•Revisit older higher-rate loans from the 2022–2023 period to see if a refinance or cash-out strategy still pencils.
I’m grateful to be recognized as one of the top mortgage brokers in the U.S. this year by Scotsman Guide, National Mortgage News and HousingWire. It reflects the same approach I bring to every client relationship: clear advice, strong execution, and a focus on getting deals done.
If you’d like updated rate quotes, a scenario analysis on a specific property, or a straightforward conversation about how these developments affect your plans, please reach out any time.
Sincerely,