Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 8/28/26! 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% range again this week, while the 10YR CMT moved down slightly to the mid 4.65% range this week.
The big news of the day was FED Chair Warsh’s comments from the Jackson Hole summit this morning. He stated that the FED will have “work to do” if policymakers aren’t confident inflation is moving back towards the 2% target. He indicated that financial conditions don’t appear “particularly restrictive,” leaving open the possibility that the FED may look to raise rates if inflation remains stubborn. The next FED meeting is September 15-16, so we look forward to that coming meeting.
In other news, PCE numbers came out with the more important Core PCE number increasing by 0.2%, coming in at 3.3%, still well above of the FED target. GDP numbers show that the economy is still growing but at a slower rate from the first quarter, coming in at 1.5%. However, personal income continues to increase, as do overall consumer spending. The combination of all of these numbers is what creates the challenge of what the FED will do next!
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 4.70% for this week and was down for the week. Overall, we will see a
decrease of about 3 bps
in the Expected Rate next week! This will have a
POSITIVE IMPACT on the Expected Rate and will result in HIGHER Benefit Amounts next week!
Based on the data from this week, we will see a decrease in the Expected Rate of about 3 bps for next week. As mentioned above, this change will have a POSITIVE IMPACT on Benefit Amounts next week. So, if you have applications or closings, we would suggest
WAITING UNTIL NEXT WEEK TO CLOSE OR TAKE NEW APPLICATIONS SO THAT YOU CAN TAKE ADVANTAGE OF THE LOWER RATES AND “LOCK-IN” HIGHER BENEFIT AMOUNTS FOR YOUR BORROWERS! As usual, rates for next week will take effect on Tuesday, September 1st! 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!!!
