08/31/2026
Another Monday Market Update is in the books, and this week we’re watching several major factors putting pressure on mortgage rates.
Renewed fighting between the U.S. and Iran pushed crude oil back above $86 per barrel, keeping geopolitical uncertainty and inflation concerns front and center. At the same time, markets interpreted Fed Chair Kevin Warsh’s Jackson Hole remarks as more hawkish, increasing expectations that we could see at least one rate hike before the end of the year.
Mortgage bonds and Treasury yields are also sitting at important levels. Mortgage-backed securities are near their weakest levels since June 2025, while the 10-year Treasury yield is near its highest level since January 2025 — making the next several economic reports especially important.
There is some potentially positive news on the mortgage front. FHFA is nearing the end of its review of certain loan-level price adjustments, which could eventually mean improved pricing for some borrowers, particularly involving second homes, investment properties and refinances.
The takeaway this week: uncertainty doesn’t mean inactivity. People are still relocating, changing jobs, getting married, getting divorced, buying and selling homes. The opportunity is still there — but this is a market where having the right strategy and staying informed matters.
