WTMS Blog Today = What’s up in Mortgage Today (AM) – 11/11/2025
Government shutdown optimism drove Treasury yields higher overnight as investors anticipate Senate action this week. UMBS 30-year securities fell across all coupons, with the 5.0% dropping 23 basis points to 99.31. This weakness translates to higher mortgage rates and reduced profitability for originators.
The Trump administration’s proposed 50-year mortgage program is generating significant industry discussion. FHFA Chairman Bill Pulte confirmed development of the extended amortization product, though critics warn it may come with higher interest rates. Industry experts note that 50-year loans would likely carry pricing premiums similar to how 30-year mortgages price higher than 15-year terms.
GNMA securities also declined, with the 5.0% coupon falling 12 basis points to 99.58. The selling pressure reflects broader bond market weakness as investors position for potential government reopening news. Ten-year Treasury yields climbed 29 basis points to 4.122%, pushing mortgage-backed security prices lower.
Veterans Day initiatives are creating new opportunities for lenders to expand their military borrower base. Down Payment Resource reports 49 programs specifically targeting veterans, offering an average benefit of $18,000. These programs can reduce loan-to-value ratios by approximately 6% while helping veterans overcome closing cost barriers.
Locking vs Floating
Bond markets remain closed for Veterans Day, extending risk exposure through Wednesday. Any government shutdown resolution could trigger additional bond weakness and higher mortgage rates. Deals closing within 30 days should consider immediate locks given the elevated uncertainty surrounding Wednesday’s potential volatility.
Today’s Events
– No economic data scheduled
– NFIB Small Business Optimism Index: 98.2 (as expected)
– Federal Reserve Governor Barr remarks scheduled
Bond Pricing – Bond Market Closed for Veteran’s Day