Cowen's Corner-Mortgage Market Update: Back on I-81 and Watching Rates Move Higher

May 18, 2026
Greetings from Blacksburg. It occurred to me on the drive down last Friday that I had not traveled I-81 since Brendan transferred to Virginia. I am not going to lie, I did not miss that trip, and I do not think I will be making it very often. Two hours is much better than four hours, and Route 29 beats I-81 every single time.
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And can I be the first to say, I do not get the Buc-ee’s thing. I feel like that place has more people and cars in it than Capital One Arena when the Caps are in the playoffs. Absolute chaos.

Market Notes

Unfortunately, last week wasn't a great for mortgage rates, with the market settling at levels we have not seen since last August.

As expected, inflation came in hotter than anticipated, although that by itself did not have a major impact on the market. What traders were really hoping for was a diplomatic shift during the summit between President Trump and President Xi.

When no meaningful progress emerged, the market sold off notably and rates ended the week roughly 25 basis points higher than the prior week.

As has been the case for roughly the last 11 weeks, the market continues to take its cues from geopolitical developments. News pointing toward resolution generally helps rates improve, while signs that the conflict may continue tend to push rates higher.

Hopefully, we get some clarity sooner rather than later.

Looking Ahead*

Enjoy a great week, and please feel free to reach out if you have any mortgage related questions or needs.

-Steve-

*All loans are subject to credit approval and program guidelines.

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About the Company

Potomac Bank, Inc., a wholly owned subsidiary of Potomac Bancshares, Inc., was founded in 1871 as Bank of Charles Town and renamed Potomac Bank on November 3, 2025. The Company’s total assets were $976 million as of March 31, 2026. The Bank conducts operations through its nine-branch network and one loan production office serving the Eastern Panhandle of West Virginia, Washington County, Maryland, and Northern Virginia. The Bank offers comprehensive financial solutions through its consumer and commercial banking divisions, Trust, Wealth, and BCT Investments divisions, and its Residential Lending mortgage division. The Bank is also proud to serve its communities as a Small Business Administration (SBA) Preferred Lender. Over the past several years, the Bank has received numerous awards and recognitions, including American Banker’s “Top 200 Community Banks” and “Best Banks to Work For”, the Journal-News “Best of the Best” award, and the LoudounNow “Loudoun’s Favorite” award. 

The Company's shares are quoted on the OTCID marketplace under the symbol "PTBS." For more information about the Bank, please visit our website at www.potomac.bank.

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