Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 9/4/26! 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 slightly this week to the 6.7% range, while the 10YR CMT moved back up significantly this week to the 4.80% range.
This week’s story is centered around one main theme: the economy continues to show enough strength to keep the FED cautious, but inflation concerns continue to pressure bond yields and mortgage rates.
Today’s jobs report came in much stronger than expected with 162,000 jobs added in August, well above expectations. These numbers show the economy still has more momentum than expected. This caused Treasury yields to move higher, mortgage rates to move higher and increased expectations for a rate hike in September. However, FED Governor Waller did deliver a more dovish message yesterday, saying that recent data may finally be showing some signs of disinflation. He went on to say that he could support holding rates steady in September if upcoming inflation data continues to improve.
Next week will be a big week as the markets will be closely watching the new CPI and PPI numbers, energy prices and additional FED commentary ahead of the September 15 FOMC meeting. If the CPI and PPI numbers come in softer than expected, look for relief in Treasury yields and mortgage rates. However, if inflation remains stubborn or moves higher, the markets may begin pricing in an even greater likelihood of a rate increase.
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. So continue to start these conversations about using home equity 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 significantly this week. Overall, we will see an
increase of 10-12 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 10-12 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! AWith the Labor Day holiday on Monday, rates will not take effect until Wednesday, September 9th 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!
