Here\u2019s a quick market update for the week of October 26, 2026. Interest rates have improved slightly over the past week, but the 10-year Treasury remains near 5%, and we have a few key reports and a Fed meeting this week.<\/p>\n\n\n\n
Bond Market & Rates<\/strong><\/p>\n\n\n\n The 10-year Treasury is trading around 4.978% this morning, down .01 from Friday. Not a huge move, but finally, we\u2019re continuing in the right direction. That\u2019s an improvement from earlier this month, when the 10-year moved above 5.30%. Of course, inflation remains one of the biggest obstacles to lower rates. September CPI came in at 3.7% year-over-year, keeping pressure on the Fed to remain cautious. The good news is that bonds have improved recently. The question now is whether this week’s Fed meeting and economic data can sustain that momentum.<\/p>\n\n\n\n What to Expect This Week<\/strong><\/p>\n\n\n\n This is a pretty important week for rates:<\/p>\n\n\n\n What we’re looking for: (Bad news is good news) Softer inflation and slower economic growth would generally be good for bonds and mortgage rates. Strong growth or another hot inflation number could push the 10-year Treasury back above 5%.<\/p>\n\n\n\n 30-Year Fixed Rate Snapshot<\/strong><\/p>\n\n\n\n One longer-term issue for rates remains the national debt, now over $40 trillion.<\/p>\n\n\n\n In the short term, the Treasury must sell a large amount of bonds to finance deficits and refinance existing debt. More Treasury supply can push investors to demand higher yields to absorb it, putting upward pressure on 10-year Treasury and mortgage rates.<\/p>\n\n\n\n Longer term, if deficits remain large, the government will keep adding to the debt while paying more interest on it. That could make it harder for long-term Treasury yields\u2014and therefore mortgage rates\u2014to move significantly lower, even if the Fed eventually lowers short-term rates.<\/p>\n\n\n\n Lock Now or Wait?<\/strong><\/p>\n\n\n\n Closing in the next 2\u20133 weeks: I would still lean toward locking. We’ve had some improvement, but with the 10-year sitting right around 5% and a Fed meeting plus inflation data coming this week, there is plenty of potential volatility. 30\u201360 days out: There may be more reason to wait for an opportunity. If inflation comes in softer and the Fed sounds less concerned about raising rates, Treasury yields could move lower again. If that happens, I would be ready to take advantage of it and lock.<\/p>\n\n\n\n Assets & Home Equity as Income<\/strong><\/p>\n\n\n\n This remains a great option for clients with plenty of assets or home equity but not enough traditional monthly income to qualify.<\/p>\n\n\n\n Example: A borrower with $1 million in eligible retirement assets could potentially generate $10,000 per month in qualifying income. If they also have $750,000 in eligible home equity, that could add another $5,000 per month. That’s potentially $15,000 per month of qualifying income without relying on traditional employment income. This can be a great solution for retired or high-net-worth clients who have substantial assets and equity but may have difficulty qualifying using traditional income.<\/p>\n\n\n\n As always, please reach out to me directly for information on real estate buying, selling, investing, and financing. 760-758-5370<\/p>\n\n\n\n To search for homes on the market in San Diego, go to: https:\/\/kevin.canerealestate.com\/<\/a><\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Here\u2019s a quick market update for the week of October 26, 2026. Interest rates have improved slightly over the past week, but the 10-year Treasury remains near 5%, and we have a few key reports and a Fed meeting this … Continue reading \n
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