Mortgage Watch

By Tim MorissetteUncategorized October 23, 2026

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Rate Watch: Bonds Improve & Rates Follow

Mortgage Rates improved slightly this week. We will take that positive move!

> Bond markets recovered some ground this week after a sharp rise in Treasury yields. The 10-year Treasury, which influences mortgage rates, moved back below 5% after trading notably higher earlier in the week. While volatility remains elevated, the bond market's rebound provided some welcome relief for borrowers.

What Does That Mean for Mortgage Rates?

When bond yields rise, mortgage rates often follow. That's what we've seen this week as investors sold bonds and moved money elsewhere.

What the Market Is Watching

Inflation data
Federal Reserve meeting next week
Oil prices and global events
Future Treasury borrowing needs

For Buyers & Homeowners

The road to lower mortgage rates is proving to be bumpy. While rates can improve quickly when bond markets rally, this week's action is a reminder that volatility remains the name of the game.

Bottom Line: Mortgage bonds improved slightly. Treasury yields moved a little lower. Mortgage rate remain flat to slightly better this week. Expect continued day-to-day volatility until inflation shows clearer signs of cooling and the war in Iran is over.

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SOURCE & AUTHOR | Keith Murphy Branch Manager – Essex Mortgage NMLS #330827 Direct: 714-309-1140 Apply: www.GoTeamMurphy.com

About the Author

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Tim Morissette, REALTOR®

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 48 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele and sons Matt and Jeff, as they continue to offer personal service with an emphasis on achieving his clients’ real estate goals. This unique combination of traits has led to his proven track record of referral and repeat business. This can be witnessed by the trust of homeowners in Foothill Ranch where he has sold twice as many homes and represented three times more buyers than the next-leading real estate agent for the last 29 years.

As residents of Foothill Ranch since 1994, Tim and Michele are actively involved in the community by fundraising for Foothill Ranch Library, Make-a-Wish Foundation, Cancer Society, Homes for Habitat, Relay for Life, South County Outreach, and the local church and schools. Tim enjoys sponsoring community-wide garage sales, paper shredding and e-waste recycling event, an Easter egg hunt, & a Meet Santa Event.

Tim and Michele are dedicated to their family of four sons, daughter-in-laws, and grandchildren. As a family, they enjoy many outdoor activities which include camping, spearfishing, mountain climbing and exploring the miles of hiking and equestrian trails in Foothill Ranch and the Whiting Ranch Wilderness Park. Tim and his sons are also avid snowboarders and enjoy mountain biking and lobster diving. Family is a top priority in the Morissette household. They look forward to helping more families achieve their dreams of homeownership.