
This Market Update is written by our Capital Market specialists each week to bring you insight into what's happening in the market and how it may affect mortgage rates and real estate trends.


Market Commentary
Interest rates for the week of May 2nd to May 8th decreased slightly. Federal Reserve policymakers announced that they were holding the federal funds rate steady after the Federal Open Market Committee (FOMC) meeting on Wednesday. The target range remains unchanged at 4.25% to 4.5%. Federal Reserve Chair Jerome Powell said at a news conference following the FOMC meeting that inflation, which was at an annual rate of 2.4% in March, was still above its 2% target and that the Fed was taking a "wait and see" approach to its monetary policy adjustments. The economy is resilient and doing fairly well."
Fed Watch: Target rate (in bps) possibilities, according to the CME Group (as of 05/08/2025 – 12:00 PM EST):

Market Review: Optimal Blue's Production Metrics:








Labor Lessons
April net job growth came in solid at 177,000. Critically, monthly job numbers are for the pay period including the 12th and thus are for early April, at most two weeks after "Liberation Day." They tell us nothing -- good or bad – about tariff impacts. However, the labor market continues cooling. Average annual hourly earnings continued to weaken, and at 3.77%, are second lowest since covid, and Feb/March employment was revised down.
- Elliot F. Eisenberg, Ph.D., Economist
News You Can Use
- Fed Remains on Pause with Rising Uncertainty
- Homebuyer mortgage demand drops further, as economic uncertainty roils the housing market
- Washington, D.C. Housing Inventory Jumps Record 25% Amid Federal Layoffs
- Sending 2 Kids to Daycare Costs More Than Rent in Most Major U.S. Metros
- More Than 80% of Metro Areas Posted Home Price Increases in First Quarter of 2025
- NAR Report Reveals Home Staging Boosts Sale Prices and Reduces Time on Market
- Housing Market Forecasts for the Second Half of the Year
Interest rate and annual percentage rate (APR) are based on current market conditions as of 05/08/2025, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to
property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by HomeServices Lending, LLC. Not available in all states. Rate is as of 05/08/2025 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac's economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac's business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an "as is" basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.