Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 7/31/26! 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 continued moving higher this week to the 6.65% range, while the 10YR CMT remains elevated, trading near the 4.65%-4.70% range again this week.
As expected, the FED left rates unchanged after their FOMC meeting this week. However, there was dissention as 3 Governors did vote to raise the benchmark rate. There remain concerns as inflation numbers remain above the FED’s target; mostly as a result of continued elevated energy prices and global supply concerns. Ongoing geopolitical tensions in the Middle East also create uncertainty with higher oil prices.
On the labor side, labor costs increased this week and wage pressures have not disappeared. Since the job market and overall economy remain relatively strong, the FED is less likely to consider any short-term rate cuts. With sticky inflation remaining and spending still up, the markets are betting on at least one rate hike before the end of the year as the FED continues to battle the inflation numbers. As a result, mortgage rates and the 10YR Treasury continue to increase as investors demand higher returns.
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 through strategic uses of home equity.
10YR CMT Interest Rate Projection for Next Week:
The 10YR CMT currently sits at 4.66% for this week and was down then back up this week. Overall, we will be flat with about an
increase or decrease of around 1 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 a change in the Expected Rate of about 1 bps for next week. As mentioned above, this change 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, rates for next week will take effect on Tuesday, August 4! 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!!!
