Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 10/23/26! 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 down this week to around 7.3%, while the 10YR CMT continued its downward move dropping below 5% by the end of the week.
The FED is coming back into focus as everyone prepares for their FOMC meeting next week. The markets will be listening to see if the FED believes inflation is cooling enough to pause rates or if further tightening is still on the table. FED Governor Waller indicated this week that inflation remains above the 2% goal, but he also acknowledged signs of disinflation and continued uncertainty around trade policy, energy prices, geopolitical risks and AI-related investments.
The National Association of Realtors noted fast-rising interest rates as the primary driver behind the Pending Home Sales Report which fell 7.3% in September. The biggest driver that pushed rates lower this week was not an inflation or jobs report, but a broader shift in market sentiment. Continued concerns around technology stocks, AI-related spending and rising financing costs pushed investors toward safer assets like US Treasuries and mortgage-backed securities. That increased bond demand and helped push yields and mortgage rates lower.
For Reverse Mortgage Professionals, this market uncertainty and higher rates continue to create opportunities to start reverse mortgage conversations with both borrowers and professionals. Seniors continue to look for creative ways to solve cash flow concerns, and these concerns create more opportunities to start conversations about how home equity can be used as a solution for their financial concerns.
10YR CMT Interest Rate Projection for Next Week:
The 10YR CMT currently sits at 5.15% and continuing moving back down this week. We will see a
decrease of 8 bps
in the Expected Rate next week! This will have a
NO IMPACT on the Expected Rate and will result in the SAME Benefit Amounts next week! (A 9 bps drop would give us higher benefit amounts next week, but that is unlikely as of today)
Based on the data from this week, we will see a decrease in the Expected Rate of 8 bps for next week. This change will have NO IMPACT on Benefit Amounts next week. So, if you have applications or closings, there will be
NO DIFFERENCE IN BENEFIT AMOUNTS FOR YOUR CUSTOMERS FROM THIS WEEK TO NEXT WEEK! New rates will take effect on Tuesday, October 27th 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!
