Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 10/16/26! This newsletter gives you a quick update on what is going on in the markets and where the 10YR CMT is headed for the upcoming week.
Market Update:
Mortgage rates remained steady this week still in the 7.4% range, while the 10YR CMT finally moved down this week to the 5.08% level.
This week, inflation data came in higher than expected this week at 3.7%, producer prices continued to rise, gasoline prices jumped over 9%, capital spending tied to AI infrastructure is growing, and retail sales came in better than expected; but most of that was driven by the gain from higher gas prices.
The FED remains in a difficult position as inflation is moving in the wrong direction, but they are reluctant to commit to another immediate rate hike to combat persistent inflation. FED Chair Warsh remains optimistic about the resiliency of the economy, while others are more cautious about where things are headed. The market is leaning towards the probability that the FED will hold rates steady in October, but with a greater chance of one more rate hike before year end if inflation remains elevated.
For Reverse Mortgage Professionals, this continued uncertainty in the market, higher borrowing costs and persistent inflation can create more reverse mortgage opportunities as the pressure on seniors to find additional cash flow relief will continue to become greater. Continue to start these conversations about using home equity as a solution for their financial concerns.
10YR CMT Interest Rate Projection for Next Week:
The 10YR CMT currently sits at 5.26% currently and finally moved back down this week. We will see a
decrease of 9-10 bps
in the Expected Rate next week! This will have a
POSITIVE IMPACT on the Expected Rate and will result in HIGHER Benefit Amounts next week!
Based on the data from this week, we will see a decrease in the Expected Rate of 9-10 bps for next week. This change will have a POSITIVE IMPACT on Benefit Amounts next week. So, if you have applications or closings, we would suggest
WAITING UNTIL NEXT WEEK TO CLOSE OR TAKE NEW APPLICATIONS SO THAT YOU CAN TAKE ADVANTAGE OF THE LOWER RATES AND “LOCK-IN” HIGHER BENEFIT AMOUNTS FOR YOUR BORROWERS! New rates will take effect on Tuesday, October 20th next week! We are providing this data so that YOU can continue to make the decisions that best suit your business based on the information you have!
If you have questions, please let me know! Thanks for the partnership!
