Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 9/25/26! 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 and are now well over 7.0%, while the 10YR CMT continued its move up again this week, now breaking through the 5.20% mark.
The dominant news this week is the continued move higher in interest rates that are being driven by stronger than expected economic data, persistent inflation concerns, hawkish FED commentary and renewed pressure in the global bond market. The market is now convinced that the FED will be looking to keep monetary policy tighter than initially thought, along with the rising possibility of additional rate hikes this year.
Employment growth accelerated to its fastest pace in more than four years and input costs continue rising as well. This combination of stronger growth, stronger hiring and persistent cost pressure is exactly what causes bond markets to move and we have seen that this week, with the highest 10YR Treasury numbers in more than 20 years. The conversation has now shifted to “how much more tightening might be necessary” to reign in inflation.
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 4.99% for this week and was up significantly again this week. We will see another
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 another increase in the Expected Rate of about 9-10 bps for next week. 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 29th 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!
