Rates as of 6/25/2026
New home sales have plunged to multi-year lows as mortgage rates held above 7% through May despite modest improvements in spreads, while mortgage applications ticked up just 1.0% week-over-week—signaling buyer demand remains fragile. Congress is advancing legislation to hike VA loan fees, drawing fierce pushback from the industry at a time when affordability pressures are already crushing demand. Meanwhile, fraud and fee disputes are intensifying: Florida homebuyers are suing Compass over a $475 closing fee seeking class status, and New York's AG charged a suspect in a deed theft case involving a 92-year-old homeowner, highlighting growing vulnerability in the elderly market. Homebuilder boards are now treating scale as a fiduciary priority after geopolitical shocks tested margins in early 2026.
TAKEAWAYAffordability crisis and fraud risks are reshaping the mortgage landscape.