Exciting Times, But Don't Get Too Excited

Exciting Times, But Don't Get Too Excited

There's no question that the past 5 days have been the best 5 days that we've seen in a long time in terms of direction movement in rates. They're made all the more miraculous because the past 2 days included much higher inflation readings. In a vacuum, inflation data was bad for rates. But the opposing forces are/were stronger in this case. There are two to consider: AI/tech correction and bond seller exhaustion. We've said for a while that yields would eventually be high enough to prompt some value buying and that 5.34-5.35% may be 2026's version of 2023's 5.00%. As luck would have it, that factor coincided with a rapid increase in the tech sector, primarily driven by Coreweave, but with the word "contagion" also being thrown around. Here's why you should temper excitement: to whatever extent "contagion" doesn't materialize, bonds will lose a good amount of the support they've recently enjoyed. What we've seen so far could be considered "act 1" of a very enjoyable show, but it could also be a short story that ends here. The only surefire justification for a bigger rally is a sustained economic slowdown, preferable coinciding with the war ending and oil falling. 

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Exciting Times. Don't Get Too Excited

MBS & Treasury Markets
UMBS 6.0
98.92
+0.32 
10YR TREASURY
5.114
-0.068 
10/14/2026 9:40PM EST
This is a heads-up for those of you with strong, initial rate sheets from lenders who are typically quick to reprice. MBS are now down more than a quarter point from early rate sheet print times. Lenders who came out strong/early could already be considering negative reprices.  MBS are still up 3/8ths on the day and 10yr yields are still down 8bps at 5.10%   READ MORE
Today's Mortgage Rates
30YR Fixed
7.33%
-0.12% 
15YR Fixed
6.98%
-0.16% 
10/15/2026
Mortgage rates dropped again today, and at a much faster pace than yesterday's decline. Top tier 30yr fixed rates are now down to 7.33% for the average lender, a drop of more than 0.25% from the long-term highs seen just last week. There are a lot of moving parts behind the scenes so let's focus on what we can know or at least reasonably conclude. [thirtyyearmortgagerates] Is this the big shift in rates we've been waiting for?  The kind that sometimes follows susta...   READ MORE
Economic Calendar
Time Event Period Actual Forecast Prior
Thursday, Oct 15
8:30AM Oct Philly Fed Prices Paid Oct 43.20 48.60
8:30AM Sep Core PPI m/m (%) Sep 0.7% 0.3% 0.2%
8:30AM Sep Core PPI y/y (%) Sep 5% 4.4% 4.6%
8:30AM Oct/03 Continued Claims (k) Oct/03 1710K 1710K 1716K
8:30AM Oct/10 Jobless Claims (k) Oct/10 199K 200K 197K
8:30AM Oct NY Fed Manufacturing Oct 25.50 10.3 7.60
8:30AM Oct Philly Fed Business Index Oct 20.9 28.4 37.8
8:30AM Sep PPI m/m (%) Sep 1.3% 0.5% 0.4%
8:30AM Sep PPI y/y Sep 6.3% 5.3% 5.4%
8:30AM Sep Retail Sales Control Group MoM Sep 0.1% 0.3% 1.4%
8:30AM Sep Retail Sales (%) Sep 0.8% 0.3% 1.2%
10:00AM Aug Business Inventories (% ) Aug 0.4% 0.4% 0.8%
12:00PM NOPA Crush Report (%)
12:00PM Oct/09 Crude Oil Inventory (ml) Oct/09 -8.557M -0.3M -3.186M
Friday, Oct 16
8:30AM Sep Import prices mm (%) Sep 0.8% 0.7%
9:15AM Sep Industrial Production (%) Sep 0.4% 0%
2:00PM Sep Federal budget (bl) Sep $-29B $-167B