Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 5/29/26! 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 hover around the 6.5% range, while we did see a drop in the 10YR CMT this week as it moved back down from last week’s highs, settling in around the mid 4.4% range this week.
After a slow start to the week with the Memorial Day holiday, we finished the week with several updates that give the FED a clearer picture of the economy. GDP data showed a still resilient economy, but one that is showing signs of a slight deceleration. PCE Inflation numbers rose by 0.4% this month, driven by higher gas prices and the 3-month annualized core PCE came in at 3.8%; underscoring the near-term inflation pressures that remain. However, consumer confidence remains high, so even with a slightly slowing economy there is not much cause for concern from the FED on this front but they do remain concerned about the “sticky” inflation numbers that they are seeing.
We also heard from several FED members this week and they continue to recite a highly cautious message confirming that they are concerned about the recent uptick in inflation numbers and that they want to see a multi-month trend of cooling inflation numbers before they will even consider further rate cuts.
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 4.60% for this week, but is moved lower this week. We will see a
decrease of around 11-13 bps
in the Expected Rate next week! This will have a
POSITIVE IMPACT on the Expected Rate and will result in HIGHER Benefit Amounts next week!
Based on the data from this week, we will see a DECREASE in the Expected Rate of 11-13 bps for next week. And, this DECREASE will have a POSITIVE IMPACT on Benefit Amounts for next week. So, if you have applications or closings, we would suggest
WAITING UNTIL NEXT WEEK TO CLOSE OR TAKE APPLICATIONS SO THAT YOU CAN TAKE ADVANTAGE OF THE LOWER RATES AND “LOCK-IN” HIGHER BENEFIT AMOUNTS FOR YOUR BORROWERS! As usual, new rates for next week will take effect on Tuesday, June 2! 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!!!
