Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 10/30/26! 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 continue to move down this week to around 7.25%, while the 10YR CMT continued its downward move as well, dropping to 4.92% by the end of the week.
The big news this week was that the FED held firm on rates this month by a 10-2 vote, with two members arguing for another 25bps rate hike. They also upgraded their description of economic activity from “solid” to “strong,” noting resilient spending, robust investment and steady employment. Inflation, however, continues to remain above their 2% target.
Inflation continues to be the biggest obstacle. Thursday’s PCE inflation report showed headline PCE up 0.5% for the month and at 3.6% year over year; while core PCE increased 0.3% for the month and up 3.1% year over year. Wage pressure is moderating, but still up 0.8% for the month and 3.4% for the year. Third quarter GDP shows the economy is growing at a 3.4% yearly rate. Strong economic growth is generally not what the bond markets want to see if it is hoping for lower rates. A strong economy gives the FED more room to keep policy restrictive and potentially raise rates again before year end if inflation remains elevated.
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 higher mortgage payments, HELOC payments, rising taxes and insurance costs and increasing healthcare costs. 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 5.07% and continuing moving down this week. We will see a
decrease of 7-8 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 7-8 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 APPLICATIONS SO THAT YOU CAN TAKE ADVANTAGE OF THE LOWER RATES AND “LOCK-IN” HIGHER BENEFITS FOR YOUR CUSTOMERS NEXT WEEK! New rates will take effect on Tuesday, November 3rd 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 partnershi
