Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 6/5/26! 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 edged down slightly but continue to hover in the 6.5% range, while the 10YR CMT remains anchored in the mid 4.4% range again this week.
The big news this week was a stronger than expected May employment report, with jobs numbers coming in more than double expectations. Unemployment held steady at 4.3%, reinforcing a job market that remains resilient. However, even with the strong employment numbers, inflation is still running above expectations. Higher energy prices and ongoing geopolitical concerns in the Middle East continue to support inflation pressures.
None of this is good for lower interest rates in the short-term. Strong jobs numbers, combined with ongoing inflation pressures, tend to reduce the chances of interest rate cuts. In fact, all of this news has market analysts discussing the possibility of a need for the FED to raise interest rates again later this year if inflation remains elevated and the job market remains strong.
Next week, we will look towards the last set of numbers to come out (CPI, PPI, etc..) before the next FED meeting coming up on June 16-17.
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 4.47% for this week, and has remained relatively flat this week. We will see an
increase of around 1-3 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 1-3 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 9! 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!!!
