Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 5/22/26! 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 up, now hovering around the 6.5% range, and the 10YR CMT keeps moving up as well, settling in around the high 4.5% range this week.
Recent updates from the latest FOMC meeting shows a FED that has turned decidedly cautious as inflation remains stubbornly “sticky” and higher energy prices, along with geopolitical factors keeps them concerned. It reinforces that not only are we not expecting any rate cuts for the remainder of the year, but it puts the possibility of further rate hikes back on the table for later this year. This reinforces that we have a divided FED as incoming FED Chair Kevin Warsh takes the reins at the FED.
Consumer sentiment moves lower as cost of living concerns and higher prices continue to dominate the conversation, even as consumer spending remains solid. Consumers are expressing fears that inflation will increase further beyond just fuel prices, driving long-term inflation expectations higher.
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; while also selling financial security to combat the noisy market news that they hear every day.
10YR CMT Interest Rate Projection for Next Week:
The 10YR CMT currently sits at 4.48% for this week, and is up again this week. We will see an
increase of around 11-13 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 11-13 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! With the Memorial Day holiday on Monday, rates will not take effect until Wednesday, May 27 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 about this, please let me know! Thanks for the partnership and Good Selling!!!
