Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 9/11/26! 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:
In observance of the 25th anniversary of the tragic 9/11 attacks, we would like to pause to remember and honor the fallen heroes of 9/11; whose courage, sacrifice and service will never be forgotten!
Mortgage rates moved up this week to the 7.0% range, while the 10YR CMT continued its move up again this week, reaching levels it hasn’t seen in almost 20 years to the 5.0% range.
This week’s theme is pretty clear – inflation reaccelerated, energy prices jumped, Treasury yields moved sharply higher, and mortgage rates followed.
The biggest driver this week was inflation. August CPI rose to over 3.4% for the year and core CPI rose another 0.3%, higher than expected. Yesterday’s PPI also came in stronger than expected, renewing concerns that inflation is not moving back towards the FED’s 2% goal. Continued geopolitical tensions drove oil prices higher causing concern of driving up overall energy costs to consumers. However, the labor markets remain strong, giving the FED more room to remain restrictive since employment isn’t creating the same sense of urgency as the inflation numbers.
The big upcoming event is next week’s FED meeting, where markets have shifted dramatically toward expecting a 25bps increase. After today’s CPI report, markets are pricing in a roughly 85% probability of a quarter-point hike next week.
For Reverse Mortgage Professionals, this continued uncertainty in the market and higher rates can create more reverse mortgage opportunities as the pressure on seniors to find additional cash flow relief will continue to become greater, continue to start these conversations about using home equity as a solution for their financial concerns.
10YR CMT Interest Rate Projection for Next Week:
The 10YR CMT currently sits at 4.78% for this week and was up significantly again this week. We will see an
increase of 9-11 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 about 9-11 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 NOW BEFORE RATES GO UP NEXT WEEK SO THAT YOU CAN “LOCK-IN” HIGHER BENEFIT AMOUNTS BEFORE THEY DECREASE NEXT WEEK! As usual, the new rates will take effect on Tuesday, September 15th next week! 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, please let me know! Thanks for the partnership!
