Weekly Market Commentary - For the Week Ending 3/6/26

Rates UP This Week, LOWER BEnefit Amounts Next Week!

Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 3/6/26! 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 remained relatively stable this week, but the 10YR Treasury did move back up this week off of its recent lows. But, rates do remain lower than they were at this time last year.

The biggest market drivers for this week were a mix of stronger inflation signals and renewed concerns of economic uncertainty. Higher energy prices and geopolitical tensions caused by the recent conflict with Iran continue to add to inflation concerns.

Today’s labor report shows the US economy lost jobs in February and the unemployment rate rose to 4.4%, which would normally push yields lower. However, the market reaction was muted as investors continue to weigh weaker labor data against sticky inflation numbers, higher energy prices and continued uncertainty around the FED’s next move. Markets continue to dial back any near-term expectations for upcoming FED rate cuts.

For Reverse Mortgage Professionals, now continues to be the time to position reverse mortgages as a way to solve cash flow concerns, preserve cash, avoid monthly payments, purchase a new home with no payments and as a tool to decrease drawing down investments to quickly. Also, pay attention to upcoming inflation data, energy prices, any labor market deterioration and FED expectations; as these are the driving factors for the direction of the 10YR CMT and ultimately benefit amounts for borrowers.

10YR CMT Interest Rate Projection for Next Week:

The 10YR CMT currently sits at 4.02% for this week and has moved back up this week. We will see an increase of around 6-8 bps in the Expected Rate next week! Unfortunately, this will have a NEGATIVE IMPACT on the Expected Rate and will result in LOWER Benefit Amounts next week!

Based on the data from this week, we will see an INCREASE in the Expected Rate of about 6-8 bps for next week. This INCREASE will have a NEGATIVE IMPACT on Benefit Amounts for next week. So, if you have applications or closings, we would suggest TAKING APPLICATIONS AND SCHEDULING CLOSINGS NOW BEFORE RATES GO UP NEXT WEEK SO THAT YOU CAN “LOCK-IN” HIGHER BENEFIT AMOUNTS BEFORE THEY DECREASE NEXT WEEK!  As usual, new rates for next week will take effect on Tuesday, 3/10/26! 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!!!