Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 7/17/26! 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 the 10YR CMT remains in the high 4.5% range again this week.
The big news this week was that June inflation numbers all came in below expectations! Both PPI and CPI numbers showed inflation cooling more than expected for June. Headline CPI slowed to 3.5%, below expectations of 3.9%; and Core CPI cooled to 2.6%, below expectations of 2.9%. Headline PPI slowed to 5.5%, well below May’s numbers of 6.0%. Analysts now believe that the recent pickup in inflation numbers is being driven more by energy prices, as opposed to being entrenched across the board.
However, ongoing tensions in the Middle East continue to create uncertainty across the globe and rising oil prices have renewed concerns that energy costs could reignite inflation numbers later this year. Even though consumer spending remains resilient and the labor market conditions remain strong, inflation concerns remain elevated as a result of the uncertain geo-political tensions in the Middle East.
One month of improving inflation numbers will not cause the FED to move. Most analysts believe the FED will remain on hold in regards to interest rates in the short-term and look for more data before making any moves. The bond markets continue to price in the possibility of a rate hike later this year.
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 4.54% for this week and was moving up for most of the week. We will see an
increase of around 2-4 bps
in the Expected Rate next week! 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 2-4 bps for next week. As mentioned above, this INCREASE will have a NEGATIVE IMPACT on Benefit Amounts 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! As usual, rates for next week will take effect on Tuesday, July 21! 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!!!
