Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 6/12/26! 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 6.5%, while the 10YR CMT remains steady around the 4.5% range again this week.
This week we got updated Consumer Price Index (CPI) numbers, and they showed that prices continue to rise, bringing the key inflation number back up to 3.7%. This remains well above the FED’s 2% target and reinforces that our “sticky” inflation isn’t breaking easily. Retail sales numbers also dropped this week, reflecting that consumer spending is starting to feel the pinch of prolonged higher borrowing costs.
Higher energy costs, due to the continued uncertainty in the Middle East, remain a driving force behind the inflationary numbers as these higher costs bleed into all sectors of the economy. Next week, we await the debut of new FED Chair Kevin Warsh as he directs the first FED meeting under his watch. The markets are interested to hear whether Chair Warsh will resume advocating for rate cuts or if he takes a more reserved approach. The next meeting is this coming Wednesday, so we will have much more to report after that meeting next week.
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 4.49% for this week, and has remained relatively flat 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 the SAME Benefit Amounts next week!
Based on the data from this week, we will see an INCREASE in the Expected Rate of 2-4 bps for next week. But, this INCREASE will have NO IMPACT on Benefit Amounts for next week. So, if you have applications or closings, 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, June 16! 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!!!
