Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 10/9/26! 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 higher and are now in the 7.4% range, while the 10YR CMT has leveled off this week at the 5.25% range.
Based on the University of Michigan consumer survey released today it shows that consumers continue to worry about cost of living and higher inflation. This is significant to the FED because if consumers begin expecting higher inflation numbers, it can make it even more difficult for them to control.
The labor markets continue to show weaker numbers indicating hiring is slowing, but layoffs remain low. These mixed signals are unusual, but do typically indicate a cooling labor market. The FED minutes released this week show they are still concerned with inflation not improving and are attributing that to cost pressures from energy and tariffs. Most FED members do believe another rate increase will be warranted before year end.
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 5.26% for this week and was flat this week. We will see an
increase of 1-2 bps
in the Expected Rate next week! This will have
NO IMPACT on the Expected Rate and will result in the SAME Benefit Amounts next week!
Based on the data from this week, we will see a slight increase in the Expected Rate of only 1-2 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! With the Columbus Day holiday on Monday, the new rates will take effect on Wednesday, October 14th 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!
