Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 8/21/26! 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 hovering in the 6.6%-6.70% range this week, while the 10YR CMT continues inching up to just over the 4.70% range this week.
The big news this week was the notice that the US national debt has surpassed $40 trillion, causing concern about the large amount of Treasury debt needed to continue financing government spending.
In other news, the July CPI was encouraging, but still not where it needs to be and the markets continue to worry that the improvement may not continue. Oil prices continue to climb due to the ongoing geopolitical tensions in the Middle East. The labor market is beginning to cool as the economy continues to lose jobs. So in regards to the FED’s dual mandate, inflation argues for keeping policy restrictive; while the job market argues for continued patience.
This uncertainty about what the FED will do next…hike, hold or eventually cut, and with no forward guidance from the new FED Chair; the markets continue to ask for additional premium in longer-term rates. This is the driving force behind long-term rates continuing to edge higher today.
For Reverse Mortgage Professionals, this continued uncertainty in the market and higher rates can create more reverse mortgage opportunities. Older borrowers dealing with higher credit card payments, higher insurance and property costs, pressure on retirement cash flows and volatile markets are the types of challenges that should lead to more retirement lending conversations. So continue to start these conversations with your senior borrowers and let SimpleReverse help you get the solution over the finish line!
10YR CMT Interest Rate Projection for Next Week:
The 10YR CMT currently sits at 4.68% for this week and was up slightly for the week. Overall, we will see an
increase of 2-3 bps
in the Expected Rate next week! This will have a
NEGATIVE IMPACT on the Expected Rate and will result in LOWER2- Benefit Amounts next week!
Based on the data from this week, we will see a slight increase in the Expected Rate of about 2-3 bps for next week. As mentioned above, this change 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 BY MONDAY 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, August 25! 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!!!
