**WTMS Blog Today = What’s up in Mortgage Today (AM) – 08/19/2025** Mortgage-backed securities are showing mixed signals this morning as the 10-year Treasury yield hovers around 4.34%, roughly unchanged from Friday’s close. Bond prices gained modest ground with the 10-year Treasury up about a quarter point, providing some relief to mortgage originators who have been battling elevated rates. The UMBS market is experiencing light trading volume typical of late summer sessions. According to the latest MBS Highway National Housing Index, conditions continue to deteriorate with August readings dropping another 2 points to 24, following July’s massive decline.
This weakness reflects ongoing challenges in mortgage origination as higher rates continue to squeeze refinance activity and dampen purchase demand. Lenders are reporting significant volume drops compared to the same period last year. Current mortgage rates are holding just under the 7% threshold, with today’s national average for a 30-year fixed-rate mortgage sitting at 6.64% according to Bankrate data. This represents a slight improvement from recent highs but remains substantially elevated compared to the sub-4% rates borrowers enjoyed just three years ago. Rate volatility continues to challenge both lenders and borrowers in planning decisions. The mortgage origination landscape remains pressured as companies continue adjusting staffing levels and capacity to match reduced demand. Industry analysts note that the current environment favors well-capitalized lenders who can weather the storm while smaller operations face increasing pressure. Purchase money lending is providing some stability, though volumes remain well below historical norms.
Looking ahead, market participants will be watching for any Federal Reserve commentary this week that could influence bond market direction and subsequently mortgage pricing. Economic data releases will be closely monitored for signs of cooling that might support bond prices and provide relief to mortgage rates. Subscribe to get this essential mortgage market intelligence delivered to your inbox daily, for free.
