WTMS Blog Today = What’s up in Mortgage Today (AM) – 09/02/2025

Mortgage-backed securities are facing headwinds this morning as treasury yields surge across the board. The 10-year treasury has jumped significantly, with the 30-year yield topping 4.97% amid concerns about potential tariff refund obligations. This bond selloff is creating a challenging environment for mortgage pricing. The UMBS market is experiencing pressure as investors react to broader economic uncertainties and rising yield expectations. Global bond markets are seeing widespread selling, which is lifting the dollar but putting downward pressure on mortgage-backed security prices. The red arrows on trading screens today reflect the deteriorating pricing environment for these securities.

GNMA securities are following the broader MBS trend lower, though government-backed instruments are showing slightly more resilience than conventional products. The spread between GNMA and UMBS pricing has tightened moderately, but both sectors remain under pressure from the rising rate environment. Liquidity remains adequate despite the selling pressure. Current mortgage rates are hovering near 6.59% nationally for 30-year fixed loans, reflecting the impact of declining MBS prices on consumer borrowing costs. Lenders are adjusting pricing throughout the day as bond volatility continues to influence secondary market conditions. Rate lock advisories are becoming more common as the market searches for direction. The mortgage origination business is adapting to this higher rate environment with many lenders focusing on purchase business over refinancing activity.

Loan officers are emphasizing the importance of timing and market education with borrowers as volatility increases. Pipeline management has become more critical as rate swings create repricing risks for lenders. Subscribe to get this essential mortgage market intelligence delivered to your inbox daily, completely free.