WTMS Blog Today = What’s up in Mortgage Today (AM) – 02/27/2026
Treasury yeilds held steady below 4.0% this morning despite hotter-than-expected inflation data. The 10-year Treasury yield dropped to 3.975%, showing resilience even as January’s Producer Price Index came in significantly above forecasts. This unexpected market strength gives mortgage originators a brief window of favorable pricing for borrowers.
The Core PPI jumped to 0.8% versus the 0.3% forecast, signaling persistent inflationary pressures at the wholesale level. Markets showed little reaction to the balmy data, with UMBS prices actually ticking up slightly by morning’s end. The disconnect between inflation data and bond performance suggests traders are focusing on other factors beyond immediate price pressures.
UMBS 30-year coupons showed mixed but stable performance across the board. The 4.5 coupon gained 16 ticks while the 5.0 and 5.5 coupons remained relatively flat. Treasury yields declined across the entire curve, with the 2-year through 30-year all posting modest improvements ranging from 2.5 to 3.9 basis points.
In mortgage industry news, Compass announced a three-year partnership with Rocket and Redfin to display coming-soon listings exclusively. Under the agreement, Compass listings will appear on Redfin’s platform, which attracts about 50 million monthly visitors, before being advertised more widely. Rocket will offer mortgage discounts to buyers who work with Compass agents, creating an integrated ecosystem connecting brokerage, mortgage servicing, and web traffic.
Locking vs Floating
Bonds are trading near their strongest recent levels this week, providing some insulation against rate increases. However, it would take strong economic data to push rates meaningfully higher from current levels. Keep in mind that non-economic events could still trigger market reactions if they’re significant enough, so maintain awareness of broader market conditions.
Today’s Events
– Core PPI m/m (Jan): 0.8% vs 0.3% forecast, 0.7% previous
– PPI m/m (Jan): 0.5% vs 0.3% forecast, 0.5% previous
– PPI y/y (Jan): 2.9% vs 2.6% forecast, 3% previous
Bond Pricing
UMBS 30 yr
| Coupon | Price | Intra-Day Change |
| 5.0 | 100.45 | 0.08 |
| 5.5 | 101.56 | 0.01 |
| 5.0 | 100.36 | 0 |
GNMA 30 yr
| Coupon | Price | Intra-Day Change |
Treasuries
| Term | Yield | Price | Intra-Day Yield Change |
| 2 yr | 3.407 | 100.179 | -0.027 |
| 3 yr | 3.407 | 100.262 | -0.034 |
| 5 yr | 3.532 | 100.99 | -0.039 |
| 7 yr | 3.735 | 101.622 | -0.033 |
| 10 yr | 3.975 | 100.206 | -0.029 |
| 30 yr | 4.636 | 99.816 | -0.025 |
