No Surprise: It Was a Trap

No Surprise: It Was a Trap

If there's been a safe bet to make on isolated rally days over the past 2 months, it's that they'll be soon followed by a return to the prevailing trend toward higher rates. Today fills that role with gusto. We hate gusto--this kind anyway. Unfortunately, this kind of gusto is all we have, and there's no convenient, singular explanation even though many will try to tell you there is. We can tell you that it's not oil, Europe, auctions, war headlines, corporate issuance, fiscal concerns, strong economy, or foreign demand. But at any given point in the uptrend, several of these things may be in play (other than "auction concerns"... that's just something someone says on auction day when they don't know why yields are higher). 

Latest Video Analysis

Today Was Nice For Bonds

MBS & Treasury Markets
UMBS 6.0
97.87
-0.19 
10YR TREASURY
5.311
+0.027 
10/7/2026 12:19PM EST
Demand was solid for the 10yr auction, which is typical on days with big yield spikes to long-term highs. 10s had already recovered more than half of today's losses as retail buyers flooded ETFs at 9:30am. The auction reaction got us the rest of the way there. 10yr yields now down nearly 1bp at 5.275. MBS are now unchanged on the day--a recovery of nearly half a point.    READ MORE
Today's Mortgage Rates
30YR Fixed
7.59%
+0.03% 
15YR Fixed
7.22%
+0.00% 
10/7/2026
Mortgage rates actually fell today--something they've done only 7 times since August 25th. While the outright levels remain near the highest since 2003, they're near the lowest in just over a week with top-tier 30yr fixed rates down to 7.56% for the average lender. What gives? Is this a sign that recent upward momentum is starting to wane? It's too soon to conclude such things, but it is somewhat encouraging that yesterday's long-term high was basically right in line with ...   READ MORE
Economic Calendar
Time Event Period Actual Forecast Prior
Wednesday, Oct 07
7:00AM Oct/02 Mortgage Market Index Oct/02 204.7 213.6
7:00AM Oct/02 MBA Refi Index Oct/02 515.8 557.8
7:00AM Oct/02 MBA Purchase Index Oct/02 145.1 148.2
10:30AM Oct/02 Crude Oil Inventory (ml) Oct/02 -3.186M 1.7M 0.922M
11:00AM Sep Consumer Inflation Expectations Sep 3.9% 3.6%
1:00PM 10-yr Note Auction (bl) 39
2:00PM FOMC Minutes
3:00PM Aug Consumer credit (bl) Aug 8.28B $15B $18.06B
Thursday, Oct 08
8:30AM Oct/03 Jobless Claims (k) Oct/03 200K 197K
8:30AM Sep/26 Continued Claims (k) Sep/26 1710K 1701K
9:20AM NY Fed Bill Purchases 1 to 4 months (%) $3.891 billion
1:00PM 30-Yr Bond Auction (bl) 22
1:40PM Fed Musalem Speech