Current Market Update

[Terry Fann]

May 21, 2025

Current Trend Direction:Holding at a critical support levelAdvise Your Clients:For loans closing within two weeks, lock in rates to secure current pricing. For longer-term loans, float but closely monitor key levels with our guidance.Current Price ofFNMA 30-year 6.0%Bond:$100.50,-19bpMMG Daily

Deficit concerns continue to weigh on bond markets, pushing prices down and yields up as both hover near pivotal technical levels.

MMG Minute:

Moody’s warnings about the growing U.S. deficit, combined with the budget bill moving through Congress, are unsettling investors. For years, budget hawks, Fed Chair Powell, and MMG have warned that the U.S. debt burden could pose significant risks. While the long-term outlook remains uncertain, bond markets face short-term pressure.

No economic reports are scheduled today. The Treasury’s 20-year bond auction is unlikely to significantly impact markets, but we’ll keep you updated.

Rising yields are increasing corporate borrowing costs, reducing equity demand and contributing to stock market declines.

Technical Outlook:

The FNMA 30-Year 6.0% bond is holding at a key support level of $100.50—monitor this closely for longer-term lock decisions. The 10-year Treasury yield, currently at 4.53%, has breached critical support at 4.50%.

Recommendation:

Lock rates for loans closing within two weeks. For longer-term loans, continue floating but be prepared to lock if the FNMA bond falls below $100.50.

App Update:

Download the TabrasaOne Mobile app (available on App Store or Google Play) for real-time notifications, videos, and updates, replacing traditional text alerts.

Video Script and Messaging for Clients/Partners on Rates

• Where are rates headed? Upward
• Why? Moody’s downgrade, the budget bill, and fading expectations for near-term Federal Reserve rate cuts.
• What’s next? A quiet week for economic data and Fed commentary.