WTMS Blog Today = What’s up in Mortgage Today (AM) – 08/25/2025
The mortgage-backed securities market is experiencing modest pressure today as the 10-year Treasury yield climbed to 4.28%, marking a 0.02 percentage point increase from Friday’s session. This uptick in yields typically translates to slightly higher mortgage rates for consumers. Bond traders are closely monitoring economic data releases that could influence Federal Reserve policy decisions in the coming weeks. Mortgage rates are holding relatively steady despite the Treasury movement, with most lenders keeping their pricing unchanged from last week’s levels. The UMBS (Uniform Mortgage-Backed Securities) market is showing resilience, though trading volumes remain lighter as we head into the final week of August. GNMA securities are following similar patterns, with institutional investors maintaining cautious positioning ahead of key economic reports.
Inflation concerns continue to weigh on bond markets following recent data from the Philadelphia Fed that showed less favorable trends than expected. This development has mortgage market participants keeping a close eye on upcoming Consumer Price Index and employment data releases. The bond market’s reaction suggests traders are pricing in the possibility of sustained higher rates through the remainder of 2025. The mortgage origination business is adapting to the current rate environment, with lenders focusing on purchase money transactions as refinance activity remains subdued. Industry reports indicate that mortgage professionals are emphasizing rate lock strategies and educating borrowers about market timing.
Real estate agents are working closely with loan officers to help buyers navigate the higher rate landscape while identifying opportunities in the shifting market conditions. Looking ahead, market participants will be watching for any signals from Federal Reserve officials regarding future monetary policy moves. The interplay between economic data, inflation trends, and Fed communications will likely drive both Treasury and mortgage-backed securities pricing in the near term. Subscribe to get this mortgage market intelligence delivered to your inbox daily, completely free.
