MBS fell 5 basis points today. Learn what this movement means for mortgage rates and homebuyers in the current market environment as of May 25, 2026.
Holden Kellerhals, Lending Strategist
NEXA Lending
Phone: (727) 591-5591
Email: [email protected]
NMLS# 2646551
Company NMLS# 1660690
Licensed in: FL, IA
Calculations based on 30-year fixed mortgage. PMI applies when down payment is less than 20%. Bank Statement loans are considered Non-Qualified Mortgage (Non-QM) products. Qualification is based on the review of personal or business bank statements rather than tax returns. Interest rates and down payment requirements for these products may be higher than those of conventional government-backed mortgages (such as FHA, VA, or Fannie Mae/Freddie Mac loans). Not all applicants will qualify. Annual Percentage Rate (APR) is subject to increase after consummation. Advertised terms are based on a loan amounts with a 760 FICO, Loan-to-Value, and 30-year fixed/ARM rate. Monthly payments includes principal and interest only; actual payment will be higher with taxes and insurance and HOA. This is not an offer to enter into an agreement. This is not a commitment to make a loan. Not all customers will qualify. Information, rates and programs are subject to change without prior notice. All products are subject to credit and property approval. All approvals are subject to underwriting guidelines. Not all products are available in all states or for all dollar amounts. Other restrictions and limitations may apply. VA loans subject to individual VA Entitlement amounts and eligibility, qualifying factors such as income and credit standards, and property limits. NEXA Mortgage, LLC is not affiliated with any government agencies. These materials are not from VA, HUD or FHA, and were not approved by VA, HUD or FHA, or any other government agency. Copyright © 2025 NEXA Mortgage, LLC NMLS#1660690. AZMB#0944059. 5559 S Sossaman Rd, Bldg #1 Ste #101, Mesa, AZ 85212, 602-344-9333. NEXA Mortgage, LLC is an Equal Housing Lender. All rights reserved.
MBS Movement Offers Glimpse Into Mortgage Rate Direction
May 25, 2026
Mortgage backed securities moved lower by 5 basis points on Monday. This shift provides a small signal about where rates may head next. Homebuyers and homeowners continue to watch these daily changes closely. The update comes on a holiday when trading volume stays light.
The 5 basis point decline in MBS suggests rates could ease slightly in the near term. Lenders often adjust pricing based on these movements in the bond market. Even small changes like this one can influence what borrowers see when they lock in a loan. Market participants will look for follow through in the sessions ahead to confirm any sustained trend.
Housing inventory remains unavailable in the latest reports. Without fresh numbers it is hard to gauge how supply is affecting affordability right now. Buyers still face elevated rates overall despite the modest MBS dip. Sellers continue to weigh when might be the right time to list given current conditions.
For buyers this movement could mean a slightly better entry point if it holds. Sellers may see steadier demand if rates improve even modestly. Both groups benefit from staying informed on these daily bond market updates. Timing decisions around rate locks becomes more important during periods of movement.
The modest MBS decline gives the market something to monitor this week. Borrowers should review their options with current trends in mind. Professional guidance helps navigate these shifts effectively.