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By Kristin Myers, Editor-in-Chief

What's Happening Today

Good morning! It's Kristin with your daily morning digest.

Interest in buying a home may be declining, as the Mortgage Bankers Association (MBA) Purchase Index dropped 12% for the week ending May 13. Mortgage applications declined for the first in three weeks as home prices and interest rates rise, according to the MBA's latest report.

Limited inventories have kept prices high, while Federal Reserve rate hikes have pushed mortgage rates higher. The average rate on a 30-year fixed mortgage was 5.67% on Tuesday, according to data collected by The Balance. Mortgage refinance applications also decreased, declining 10% from the week prior and 76% from the same week last year, according to the MBA.

New home construction is also starting to slow, dropping 0.2% in April from the month prior, according to the Census Bureau's latest data released this morning. The nation's housing supply has been limited, with inventories "essentially at an all-time low" in March, according to the National Association of Realtors, adding heat to the housing market and causing home prices to stay elevated. Meanwhile, building permits for new construction projects fell 3.2% in April from the month prior, indicating it might be a while before the number of available homes for sale increases substantially.

Stocks are falling today after rallying yesterday on comments from Federal Reserve Chair Jerome Powell reassuring Americans that the central bank would "keep pushing" to raise interest rates in order to fight inflation. Powell's comments came amid worries about the ability of the Fed to hike rates while avoiding a recession. Markets have been turbulent the last few weeks over concerns about inflation, the Fed, and the strength of the economy.

- Kristin

Editors' Picks

Homebuyers, Builders Hold Off as Mortgage Rates Rise (The Balance)

Other People Are Working Through Covid. Do You Have To? (The Wall Street Journal)

Loss of Refineries a Factor in High Gas Prices (The Balance)

Coming Soon to a Walmart Near You: More Inflation (The Balance)

Why You Could be Paying 50% More for a Jug of Milk This Year (CNN)

India Isn't the Only One Banning Food Exports. These Countries Are Doing the Same (CNBC)

Where To Get a Home Equity Loan (The Balance)

How To Locate and Request Online Probate Court Records (The Balance)

Off the Charts

The average rate offered for a conventional 30-year fixed mortgage fell to 5.67% on Tuesday from 5.71% the previous business day. Last month it reached 6.19%, its highest point since at least 2019, according to data collected by The Balance.

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Number of the Day

50 - That's how many states are now averaging at least $4 a gallon at the gas pump, a milestone that shows just how much all drivers are feeling the pinch.