The 10YR CMT continued moving up this week, so we will see an INCREASE in the 10YR CMT for next week. However, this will result in NO CHANGE to BENEFIT AMOUNTS next week!
The 10YR CMT currently sits at 4.10% for this week, and we will see another
increase of 5-7 bps
in the Expected Rate next week! This will have a
NEGATIVE IMPACT on the Expected Rate, but will result in NO CHANGE to Benefit Amounts next week!
As you know by now, the FED did cut its benchmark rate by another 25bps this week, marking its third straight rate reduction this year. Officials have differing opinions on the longer term path, but they did maintain projections for one cut in 2026. The FED did indicate in remarks that we will probably see a pause from any further easing to start the year and that we will be in a holding pattern in the short term.
The updated “dot plot” from the FED, which forecasts their views of rates in the coming years, showed a wide difference in views about where things should head in the future. Concerns over inflation to continue, as well as potential continued cooling in the job markets. Uncertainty over tariff-driven inflation remains high and indications are that the FED will be closely watching to see what extent these costs are passed on to consumers in 2026.
Many analysts still believe we will see potentially two rate cuts next year, but as the FED highlighted, their decisions will be based on the data that comes in over the next few months.
This week, the 10YR CMT Index is 4.10%. Here is what the 10YR CMT has done this week, so we will see an INCREASE in the 10YR CMT for next week. This increase WILL HAVE NO IMPACT on Benefit Amounts!
10YR CMT
12/8/25 12/9/25 12/10/25 12/11/25 12/12/25 (Intraday)
4.17 4.18 4.13 4.14 4.19
Based on the data from this week, we will see an INCREASE in the Expected Rate of 5-7 bps for next week. This INCREASE will have NO IMPACT on Benefit Amounts for next week. So, if you have applications or closings soon, there will be
NO DIFFERENCE IN BENEFIT AMOUNTS FOR YOUR CUSTOMERS IF YOU TAKE APPLICATIONS NOW OR WAIT UNTIL NEXT WEEK TO APP OR CLOSE! As usual, new rates for next week will take effect on Tuesday, 12/16/25! As always, we are providing this data to you, so that YOU can continue to make the decisions that best suit your business based on the information you have!
If you have questions about this, please let me know! Thanks for the partnership and Good Selling!!!
