Weekly Market Commentary (for the week ending 8/8/25)

Rates Down This week, Higher Benefit Amounts Next Week!

The 10YR CMT moved down this week, and as a result, we will see a decrease in the 10YR CMT for next week. This decrease will result in an INCREASE to PRINCIPAL LIMITS and BENEFIT AMOUNTS next week!!

The 10YR CMT currently sits at 4.35% for this week, and we should see a decrease of 11-13 bps in the Expected Rate next week! This will have a POSITIVE IMPACT on the Expected Rate, and will result in HIGHER Principal Limits and Benefit Amounts next week!!

Not much in regards to news or new data this week, but the markets have still been responding to last Friday’s underwhelming jobs report, the firing of the head of the US Bureau of Labor Statistics and signs of stagflation beginning to emerge. Eyes are looking to next week with the July CPI and PPI inflation data to be reported. Analysts will be looking to see to what extent recent tariff policies are passed through to consumer prices.

In other news, we will have a new face at the FED with Council of Economic Advisors Chairman Miran expected to be nominated to fill the remainder of FED Governor Kugler’s term. If confirmed, it seems likely he will join the call for an interest rate cut at the September FOMC meeting. Markets are currently giving a greater than 90% chance of a 25bps rate cut at the September meeting and at least one more cut before year end.

However, FED Chair Powell remains adamant in recent comments that the FED is uncertain as to the inflationary effects of new tariffs; and the last thing he wants to do is lower rates only to see inflation creep higher, forcing the FED to backtrack on rates. But, others feel the FED is behind the curve and already should have lowered rates. So it will be interesting to see what viewpoint wins out and what the FED does at its September meeting, so stay tuned!

This week, the 10YR CMT Index is 4.35%. Here is what the 10YR CMT has done this week, so we will see a DECREASE in the 10YR CMT for next week. This decrease WILL HAVE A POSITIVE IMPACT on Principal Limits!

10YR CMT               

8/4/25     8/5/25    8/6/25    8/7/25     8/8/25 (Intraday)

  4.22        4.22       4.22        4.23         4.28

Based on the data from this week, we will see a DECREASE in the Expected Rate of 11-13 bps for next week. This DECREASE will have a POSITIVE IMPACT on the Principal Limits and Benefit Amounts for next week. So, if you have applications to take, we would suggest WAITING UNTIL NEXT WEEK TO TAKE YOUR APPLICATIONS SO THAT YOU CAN TAKE ADVANTAGE OF THE LOWER INTEREST RATES AND “LOCK-IN” HIGHER BENEFIT AMOUNTS FOR YOUR CUSTOMERS!!  As usual, new rates for next week will take effect on Tuesday, 8/12/25 and beyond! And, as always, we are simply providing this data to you, so that YOU can continue to make the decisions that best suit your business based on the information you have!

If you have questions about this, please let me know right away!!! Thanks for the partnership and Good Selling!!!