**WTMS Blog Today = What’s up in Mortgage Today (PM) – 08/28/2025**
Mortgage-backed securities (MBS) showed modest stability today as the 10-year Treasury yield eased to 4.22%, marking a slight 0.02 percentage point decrease from yesterday’s session. This small decline in Treasury yields provided some relief for mortgage pricing, with several major outlets reporting that mortgage rates have dropped to 10-month lows. The bond market’s cautious optimism reflects ongoing uncertainty about Federal Reserve policy direction. Market analysts are closely watching political developments that could impact future monetary policy. Recent discussions about potential changes to Federal Reserve independence have created some volatility concerns, with experts warning that such moves could push mortgage rates higher in the long term. However, the immediate market reaction has been relatively muted as traders focus on current economic fundamentals.
The MBS market is benefiting from technical factors including improved liquidity and reduced volatility compared to earlier this month. Origination volumes remain steady despite the higher rate environment, with many borrowers taking advantage of the recent rate improvements. Secondary market pricing for mortgage-backed securities has stabilized after recent fluctuations. Fitch Ratings announced final ratings for GS Mortgage-Backed Securities Trust 2025-RPL4 today, signaling continued institutional confidence in the structured finance market. This development, along with other recent securitization activities, suggests healthy demand for mortgage credit risk transfer mechanisms.
The rating action reflects stable performance expectations for the underlying mortgage assets. Looking ahead, market participants are positioning for potential Fed communication at the upcoming Jackson Hole symposium. Any signals about future rate trajectory could significantly impact both Treasury and MBS pricing in the near term. For now, the modest improvement in bond prices provides a welcome respite for mortgage originators and borrowers alike. Subscribe to get this essential mortgage market intelligence delivered to your inbox daily, completely free. Stay ahead of the market with timely updates that matter to your business and investment decisions.
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