**WTMS Blog Today = What’s up in Mortgage Today (AM) – 08/24/2026**
Treasury Secretary Scott Bessent’s attempt to control the bond market through debt buybacks collapsed within 24 hours last week, exposing a harsh reality: policymakers cannot simply engineer lower rates without addressing the root causes driving them higher. The 10-year yield spiked back to near 4.73 percent by Friday despite Bessent’s “Treasury twist” intervention, signaling that massive deficits, resilient economic growth, surging corporate bond issuance from AI companies, and higher global rates are overpowering any technical market management. Investors view fiscal deterioration—not policy tweaks—as the dominant force shaping long-term borrowing costs, and Fed Chair Kevin Warsh’s cryptic communications have only deepened uncertainty about the central bank’s next move.
This week’s Jackson Hole speech from Warsh on Friday will be critical; markets need clarity on the Fed’s balance sheet strategy and inflation trajectory. For mortgage lenders facing margin compression, the takeaway is stark: lock in hedges now, because policy fixes won’t save you from a yield curve that’s being set by markets, not central banks. The Two Harbors and CrossCountry Mortgage deal closes today, adding another major consolidation piece to an already frenetic M&A landscape.
NEXA Lending acquired UMortgage over the weekend in an asset deal bringing 246 loan officers and $2.05 billion in annual volume to the mega-broker, pushing NEXA’s total production to $14.15 billion. Fannie Mae’s leadership instability has sparked fresh concerns about agency stability, as the Trump administration dismissed at least 12 senior officials last week with no formal communication about their departures. loanDepot faces delisting risk after receiving an NYSE warning for trading below $1 per share; the company has six months to restore compliance or pursue a reverse stock split.
Lenders should monitor capital preservation closely, as the sector continues to experience significant operational and structural strain.
**Locking vs Floating**
Lock and float risk remains elevated because daily geopolitical shocks around fuel prices and war outcomes continue to create unpredictable yield movements. Corporate bond issuance is adding sustained downward pressure on mortgage rates, but without a confirmed downtrend or clear technical support, originators should maintain a defensive posture.
Short-term trading opportunities may emerge, but sustainable momentum shifts have not yet materialized—patience remains the prudent strategy.
**Today’s Events**
No major economic data releases scheduled for today.
**Bond Pricing**
**UMBS 30 yr**
| Coupon | Price | Intra-Day Change |
**GNMA 30 yr**
| Coupon | Price | Intra-Day Change |
**Treasuries**
| Term | Yield | Price | Intra-Day Yield Change |
| 2yr | 4.229 | 100.039 | -0.009 |
| 10yr | 4.701 | 99.402 | -0.032 |
| 30yr | 5.232 | 98.392 | -0.041 |
