Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 7/10/26! 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 has moved back up to the 4.5% range this week.
Bond markets continue to face headwinds as they weigh lingering inflation concerns, geopolitical uncertainty in the Middle East, and the FED’s next move. There was no major news driving the markets this week, but we have a big week next week as we will get updated CPI and PPI numbers (the FED’s key inflation data) and additional commentary from several FED officials.
Weekly Jobless Claims remained low this week, reinforcing a resilient labor market. A healthy labor market supports continued consumer spending and gives the FED less urgency to lower rates. The minutes for last month’s FOMC meeting continue to reinforce a cautious FED that is emphasizing that inflation risks remain elevated, tempering any expectations for near-term rate cuts.
Ongoing tensions in the Middle East continue to create volatility in both the energy and bond markets. And with news that the cease-fire agreement is on shaky ground, we expect to see higher oil prices. This tends to increase inflation expectations and keep Treasury yields elevated.
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 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 4.45% for this week and has been moving up this week. We will see an
increase of around 7-9 bps
in the Expected Rate next week! However, 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 7-9 bps for next week. As mentioned above, this INCREASE will have NO IMPACT on Benefit Amounts 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, July 14! 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!!!
