Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 10/2/26! 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 moved up again this week and are now in the 7.25% range, while the 10YR CMT continued its move up again reaching levels we haven’t seen in almost 25 years at the 5.25% level.
The story this week is rate volatility driven by the tug of war between still-sticky inflation and a noticeably softer labor market. These mixed signals of higher inflation and slowing employment makes the FED’s next move much less certain.
Unemployment edged up this week and the Labor Department reported way less jobs added in September than expected. The PCE numbers came in not as bad as expected, but Core PCE is still at 3%, well above the FED’s target. The Prices Index also made a big jump this month due to higher energy costs, metals prices, tariffs and supply-chain pressures. All of this data makes it unclear what the FED will do in October, but it does reduce the likelihood of another rate increase at the next FED meeting.
For Reverse Mortgage Professionals, this continued uncertainty in the market and higher rates 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 5.08% for this week and was up significantly again this week. We will see an
increase of 16-18 bps
in the Expected Rate next week! This will have another
NEGATIVE IMPACT on the Expected Rate and will result in LOWER Benefit Amounts next week!
Based on the data from this week, we will see another increase in the Expected Rate of about 16-18 bps for next week. This change will have a NEGATIVE IMPACT on Benefit Amounts next week. So, if you have applications or closings, we would suggest
TAKING APPLICATIONS AND SCHEDULING CLOSINGS NOW BEFORE RATES GO UP NEXT WEEK SO THAT YOU CAN “LOCK-IN” HIGHER BENEFIT AMOUNTS BEFORE THEY DECREASE NEXT WEEK! As usual, the new rates will take effect on Tuesday, October 6th 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!
