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Posted on May 11, 2023 4 minute read

Rates Drop From Last Week

What's in this article?

Current mortgage rates drop from last week
Single-family home rent increases
Bank turbulence: Will it continue?

Welcome to Homefinity’s weekly newsletter, where we bring you the latest updates and insights on the mortgage and housing market. 

In this edition, we discuss the current mortgage rates, rental trends, bank turbulence, and tight inventory in the housing market.

Current mortgage rates drop from last week

Current mortgage rates have decreased from last week, with the average rate for a 30-year fixed mortgage sitting today at 6.79%, down from 6.87% a week ago. 

Echoing this movement, the 15-year fixed mortgage rate has also dropped from 6.20% to 6.17%. 

May analysts are hoping this slight drop in rates may encourage potential homebuyers to take advantage of the lower rates and enter the market sooner rather than later. 

Jumbo mortgages

Jumbo loan rates—properties more expensive than those covered under a conventional conforming loan (approx. $647,000 for most areas)—were 6.84% as of May 5, down a whopping 10 basis points from the previous week at 6.94%.


5/1 adjustable-rate mortgages were at an average of 5.81%, increasing 1 basis point from the week before.

FHA and VA loans

The rate for 30-year, Federal Housing Administration-insured mortgages have fallen to 5.80% on May 5, down from 5.94% at the end of April. 

VA loans are down quite a bit from last week, sitting at 6.04%, compared to 6.12% on April 28.

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Single-family home rent increases

USA Today reports that the rent for single-family homes has increased significantly—the national average rent for a single-family home rose by 7.8% in the first quarter of 2023 compared to the same period last year. 

Some of the factors contributing to this trend include increased demand for larger living spaces, remote work opportunities, and low housing inventory. 

Homeowners looking to invest in rental properties might find this trend beneficial, as it can result in higher rental income. Conversely, renters may face greater challenges in finding affordable single-family homes to rent.

Bank turbulence: Will it continue?

In a recent shareholder’s meeting reported by CNBC, Warren Buffett predicted that American banks could face even more turbulence ahead.

But while he assured the audience that deposits are safe, he also criticized regulators, politicians, and the media for creating a misunderstanding among the public about the security of American banks. 

Buffett said he believed that the public is largely unaware that their bank deposits are secure, regardless of whether or not they have insurance.

The Chief Executive Officer of Berkshire Hathaway summed up the turbulence caused by the recent banking collapse as “something very similar to what it’s always been. Namely, that “fear is contagious.” 

Buffett added that the fear was sometimes justified, and sometimes it wasn’t.

Buffet says he’s prepared to use Berkshire’s cash for American banks

Buffett expressed that he is prepared to use Berkshire Hathaway’s significant cash reserves—estimated to exceed $130 billion, with an increment in operating earnings from the previous year of $7.16 billion— if needed in order to stabilize the turbulence. 

Since Buffett began leading Berkshire Hathaway, the company has had a close association with banks. In the 1990s, he lent his knowledge and influence to guiding Salomon Brothers back to good standing. 

Additionally, his investments of $5 billion into both Goldman Sachs and Bank of America in 2008 and 2011, respectively, helped to steady both those organizations.


As a homebuyer or investor, staying informed about these trends and making well-informed decisions is essential for success in today’s market. 

Keep following Homefinity’s newsletter for the latest updates and insights on the mortgage and housing industry.

When you’re ready to look into purchasing or refinancing—reach out to Homefinity

*Mortgage rate projections are not a reflection of Fairway’s opinion or guarantee of interest rates in the current or upcoming market.

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