**WTMS Blog Today = What’s up in Mortgage Today (AM) – 08/12/2025**
Mortgage backed securities are facing continued pressure this morning as investors remain cautious ahead of key economic data releases. The 10-year Treasury yield is holding near recent highs, creating headwinds for mortgage rate pricing across the board. UMBS prices are showing modest volatility with mixed trading patterns as markets digest overnight developments. GNMA securities are tracking closely with UMBS movement, reflecting broader market uncertainty. Treasury markets opened with sideways action as traders await clarity on Federal Reserve policy direction. The benchmark 10-year note is testing resistance levels that could signal further rate increases if broken.
Bond traders are positioning defensively given the current interest rate environment and inflation concerns. Economic data scheduled for release this week will likely determine near-term direction for both treasury and mortgage securities. Mortgage originators are adapting to the current rate environment with many focusing on refinance opportunities as they become available. Lenders continue to tighten credit standards while managing capacity in response to application volume fluctuations. The secondary market remains active but selective, with investors showing preference for higher-quality loan products.
Rate volatility is creating challenges for lock timing and pipeline management across the industry. Real estate markets are showing resilience despite higher borrowing costs, though transaction volumes remain below historical averages. Home prices continue to show strength in most markets, supported by limited inventory and demographic demand factors. Buyer activity has shifted toward more price-sensitive segments as affordability constraints persist. Subscribe to get this information in your inbox daily for free and stay ahead of mortgage market movements that impact your business.
