Weekly Market Commentary - For The Week Ending 2/6/26

Rates Up Slightly This Week, NO Changes to Benefit Amounts Next Week!

Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 2/6/26! 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 visit recent lows and the 10YR Treasury is holding steady in the low 4% range. Thoughts about upcoming rate cuts should be tempered as the FED remains in a holding pattern and has reiterated a wait and see approach driven by upcoming data and numbers.

Markets are waiting on the next CPI release, due in mid-February, to see where new inflation numbers fall. If inflation numbers come in higher, expect a move up in long-term rates, if numbers come in lower, we could see some further downward movement on the rate side. 

The labor markets continue to see more cooling, as recent jobs reports show an increase in initial jobless claims this past week. The data does support the environment of recent low-hiring and low-firing, suggesting the labor market is still cooling, but not collapsing. Long term rates care about this since a slower labor market but not a recession lend to a steeper yield curve where rates could remain elevated even with eventual rate cuts from the FED.

In the current environment, there is as much focus on the growing debt and shifting expectations around long-term demand for US Treasuries as there is on future growth optimism of the overall economy. Read into this as continued market uncertainty. As you know, the markets react unfavorably to uncertainty in the market, and recent commentary points to added uncertainty around future FED leadership, balance sheet expectations around Treasury demand and volatility and the growing national debt and how that impacts our standing in the overall world economy.

For Reverse Mortgage Professionals, with no expectation of sudden rate drops, now is the time to be positioning reverse mortgages as a way to solve cash flow concerns, preserve cash, avoid monthly payments, and as a tool to decrease drawing down investments to quickly. Continue to educate referral partners and frame reverse mortgages as a real retirement planning tool and not just a last resort loan program. 

10YR CMT Interest Rate Projection for Next Week:

The 10YR CMT currently sits at 4.24% for this week and has been up slightly this week. We will see an increase of around 2-4 bps in the Expected Rate next week! This will have NO IMPACT on the Expected Rate and will result in NO CHANGE to Benefit Amounts next week! 

Based on the data from this week, we will see an INCREASE in the Expected Rate of about 2-4 bps for next week. This DECREASE will have NO IMPACT on Benefit Amounts for next week. So, there will be NO DIFFERENCE IN BENEFIT AMOUNTS FOR YOUR CUSTOMERS FROM THIS WEEK TO NEXT WEEK! As usual, new rates for next week will take effect on Tuesday 2/10/26! 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!!!