**WTMS Blog Today = What’s up in Mortgage Today (AM) – 9/3/25**

Mortgage-backed securities are trading in a cautious range as markets digest mixed economic signals and Fed commentary. The 10-year Treasury sits at 4.28%, up from yesterday’s levels but still within recent trading parameters. UMBS prices are showing modest weakness as investors weigh inflation concerns against potential Fed policy shifts. Federal Reserve officials’ recent comments about maintaining flexibility in monetary policy have created some uncertainty in the bond markets. While the Fed appears committed to fighting inflation, market participants are parsing every word for clues about future rate decisions.

This parsing has led to increased volatility in both Treasury and mortgage-backed securities markets. The mortgage origination landscape continues to face headwinds from elevated rates and reduced refinancing activity. Lenders are adjusting their strategies, focusing more on purchase money loans as refi volume remains compressed. Industry professionals report that borrowers are increasingly rate-sensitive, with many choosing to wait for better pricing conditions.

GNMA securities are experiencing similar pressures to the broader MBS market, with government-backed securities tracking closely to conventional mortgage bonds. The spread between GNMA and UMBS pricing remains relatively stable, indicating consistent investor appetite for government-guaranteed products. However, overall demand remains subdued compared to the low-rate environment of recent years. Looking ahead, market watchers are focused on upcoming economic data releases that could influence Fed policy and bond pricing.

The interplay between inflation data, employment figures, and Fed communications will likely drive near-term market direction. Mortgage professionals are advising clients to monitor markets closely for potential pricing opportunities.

Subscribe to get this critical mortgage market intelligence delivered to your inbox daily, completely free.