Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 9/18/26! 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 moved up again this week to just over the 7.0% range, while the 10YR CMT continued its move up again this week, officially breaking through the 5.0% mark.
The dominant news this week was the FED’s first rate increase in more than three years, raising their target rate by 25bps based on continued “sticky” inflation. They stated that economic activity continues to expand at a solid rate, but inflation remains elevated and they are not yet satisfied with the pace of inflation returning towards 2%.
The labor market continues to add jobs and unemployment remains steady, allowing the FED to stay restrictive as they focus their efforts on trying to reign in inflation. The other major factor driving the numbers is oil and fuel prices continuing to increase due to the ongoing geopolitical tensions in the Middle East. The concern is that as fuel prices continue to rise, these higher costs could filter back into broader inflation numbers in the coming weeks.
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 4.89% for this week and was up significantly again this week. We will see an
increase of 9-10 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 9-10 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 22nd 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!
