WTMS Blog Today = What’s up in Mortgage Today (AM) – 08/22/2025

Mortgage-backed securities are showing mixed signals today as investors navigate through a relatively quiet trading session. The 10-year Treasury yield has eased slightly to 4.32%, down 0.01 percentage points from yesterday’s close, reflecting modest bond market stability. This small improvement in Treasury pricing is providing some support for MBS pricing, though movements remain contained within narrow ranges. Current mortgage rates are holding below the 7% threshold, with the national average for a 30-year fixed-rate mortgage sitting at 6.60% according to recent data. This represents a continuation of the recent trend that has kept rates in a more manageable range for potential homebuyers. The slight improvement in bond yields is helping maintain this favorable rate environment, at least for now. Market participants are keeping a close eye on upcoming economic data releases that could shift the trajectory for both Treasury bonds and mortgage-backed securities.

The Federal Reserve’s recent policy stance continues to influence trading patterns, with investors looking for signals about future monetary policy direction. Any changes in Fed expectations could quickly alter the current stability we’re seeing in MBS pricing. The mortgage origination business is adapting to the current rate environment, with lenders adjusting their strategies to work within these parameters. Industry professionals are cautiously optimistic about maintaining current rate levels, though they remain prepared for potential volatility. The relatively stable MBS market is providing some predictability for loan pricing, which benefits both lenders and borrowers in the current environment.

Today’s trading session appears to be setting up for continued sideways movement unless significant economic news emerges to drive directional changes in bond markets. Subscribe to get this mortgage market intelligence delivered to your inbox daily, free of charge.