Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 5/15/26! 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 however around the 6.3% range, but we have seen a spike in the 10YR CMT today as it has jumped up over 4.5% after being relatively stable the past few weeks.
This week we saw two reports released, and neither was great news for interest rates. The Producer Price Index (PPI) came out Wednesday and surged 1.4% in April, higher than expectations driven by a spike in energy prices from the ongoing conflict in Iran. Tuesday, we saw the Consumer Price Index (CPI) reporting headline and core numbers elevated as well. This shows that “sticky” inflation continues as we move into the summer. Jobs data also came out reporting stronger than expected growth, traditionally putting additional pressure on keeping rates higher.
All of this indicates that we can continue to expect a “higher for longer” stance from the FED as this data shows inflation isn’t cooling as fast as we would like. Speaking of the FED, we did see the installation of Kevin Warsh as the new FED Chair this week. He is the hand-picked successor from President Trump, so indications are he will look to cut rates quickly, however, historically he has maintained a hawkish view and has many of his own beliefs about the role of the FED. The markets aren’t optimistic that we will see any changes from the FED in regards to rate cuts for the remainder of the year, but we will continue in a wait and see posture as the new FED Chair finds his footing.
For Reverse Mortgage Professionals, it remains important to do the right thing for your clients and show them how the benefits of a rising line of credit, no required payments and a tool like a reverse mortgage can help them combat rising costs, diminishing purchasing power and increasing volatility in the markets. Focus on becoming an advisor instead of a “product-pusher” to help them find the best financial solutions and strategies for your senior clients in retirement.
10YR CMT Interest Rate Projection for Next Week:
The 10YR CMT currently sits at 4.41% for this week, and has spiked up today. We will see an
increase of around 6-8 bps
in the Expected Rate next week! And, 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. And, 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, 5/19/26! 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!!!
