For the week of May 4, 2026

“I always arrive late at the office, but I make up for it by leaving early.” — Charles Lamb, English essayist, poet, and antiquarian

New listings pulled back slightly following last week’s surge, but the broader trend shows sellers continuing to reengage at a measured pace. Inventory is still building, giving buyers more options as the spring market unfolds.

Active inventory remains above last year’s levels, while asking prices continue to soften. Homes are also moving at a steady pace, signaling that demand is keeping up with supply and preventing excess buildup.

Mortgage rates and financial markets have stabilized in recent weeks, helping support buyer confidence. While affordability remains a challenge, improving conditions are helping sustain activity as the market moves through peak season.

EARNINGS HOLD FIRM...Stocks held relatively steady last week as strong corporate earnings continued to offset concerns around inflation, energy prices, and Federal Reserve policy.

Bond yields remained elevated as markets balanced resilient economic data with persistent inflation pressures. Investors continued to monitor Fed signals alongside global developments impacting energy and rates.

Despite mixed headlines, economic fundamentals remain solid. Consumer spending is holding up, business investment remains strong, and housing continues to show gradual improvement supported by rising inventory and steady demand.

The week ended with the Dow down 0.3%, to 49,499, the S&P 500 up 0.3%, to 7,230, and the Nasdaq up 1.1%, to 25,114.

Bond markets showed modest movement as inflation concerns persisted and expectations for near-term Fed easing remained limited. Mortgage rates held relatively steady, reflecting a balance between economic strength and ongoing uncertainty.

DID YOU KNOW...Asking prices have now declined or held flat for more than six months, a shift that is helping improve affordability and create more opportunities for buyers this spring.

JOBS DATA, SERVICES PMI, FED OUTLOOK...Markets will focus on the April jobs report and service-sector activity for signals on economic momentum. Labor market strength remains a key factor shaping Federal Reserve policy expectations. While the economy continues to show resilience, inflation pressures and higher borrowing costs remain important considerations. Stable data could help keep mortgage rates contained and support ongoing housing activity.

Forecasting Federal Reserve policy changes in coming months. Markets currently expect policymakers to remain on hold as they evaluate inflation trends, labor market strength, and broader economic conditions. The Fed is likely to maintain a cautious stance while assessing whether current pressures begin to ease. Note: In the lower chart, the 4.2% probability of change means there's a 95.8% probability the rate will stay the same. Current rate is 3.50%–3.75%.

Probability of change from current policy:

Business is a contact sport. Even more important than what you know is who you know. Relationships matter more than anything else, so focus on building and maintaining strong connections with prospects, clients, and referral partners.