**WTMS Blog Today = What’s up in Mortgage Today (PM) – 09/22/2025**

Mortgage markets experienced continued pressure today as both mortgage-backed securities and Treasury bonds faced headwinds. The 10-year Treasury yield climbed to 4.149%, up 2.2 basis points from Friday’s close, signaling ongoing concerns about inflation and Federal Reserve policy. This upward movement in yields corresponds to downward pressure on bond prices, creating challenging conditions for mortgage originators. Mortgage-backed securities pricing reflected the broader bond market weakness, with UMBS (Uniform Mortgage-Backed Securities) showing red arrows indicating price declines. The downward movement in MBS pricing directly translates to higher mortgage rates for consumers, with 30-year fixed rates rising to approximately 6.53% according to multiple market sources. This marks the second consecutive day of rate increases, reversing some of the modest improvements seen earlier in the week.

Lock and float considerations have become increasingly critical as market volatility persists. Originators are advising heightened caution with floating positions, particularly given the uncertainty surrounding upcoming economic data releases and Federal Reserve communications. The current environment favors locking loans quickly rather than gambling on potential rate improvements. GNMA securities also participated in the broader selloff, though to a lesser extent than conventional MBS products. The government-backed nature of GNMA provides some stability, but overall market sentiment continues to drive pricing lower across all mortgage securities sectors. Trading volumes remain elevated as investors position for potential further volatility. Real estate professionals are reporting increased urgency from borrowers looking to secure financing before rates move higher.

Purchase applications have shown some resilience despite the rate environment, though refinance activity continues to lag significantly. The mortgage origination business faces ongoing margin pressure as competition for the shrinking pool of rate-sensitive borrowers intensifies. Market participants are closely watching this week’s economic calendar, including consumer confidence data and pending home sales figures. Any surprises in these indicators could amplify current trends or provide relief to the beleaguered bond market. The path forward remains uncertain as markets navigate between inflation concerns and economic growth expectations.

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