Thursday, October 15, 2026: Daily Mortgage Market Update — Rates Ease as Tech Selloff Pulls Treasury Yields Lower
Hot September PPI failed to lift yields; a flight into Treasuries from the tech rout cut the 10-year about 11 basis points and pulled average mortgage quotes lower.
FRANKLIN, Tenn. — Mortgage rates moved lower Thursday even after another hotter-than-expected inflation print, as a sharp selloff in technology shares sent investors into Treasuries and pulled the 10-year yield down by roughly 11 basis points.
The Bureau of Labor Statistics said the producer price index rose 1.3% in September and 6.3% over the past year, well above forecasts near 0.5% and 5.3%. Core PPI, which strips out food and energy, climbed 0.7% for the month and 5.0% year over year, also hotter than expected. Separate retail sales data showed total sales up 0.8% in September, though the control group used in GDP tracking rose only 0.1%.
Bond traders looked past the inflation scare. The 10-year Treasury yield fell to about 5.08% in late trading, down from Wednesday’s roughly 5.19% close and on pace for its largest one-day drop since August 2025, according to market reports. The 30-year yield slipped more than 9 basis points to about 5.43%, and the 2-year yield eased as well. Investors rotated into government debt amid an AI-driven tech rout, offsetting what would normally be rate-negative wholesale price news.
Mortgage pricing followed the bond rally. Mortgage News Daily’s daily index put the average 30-year fixed at 7.33%, down 0.12% from Wednesday, with the 15-year fixed at 6.98%, down 0.16%. Freddie Mac’s weekly Primary Mortgage Market Survey, released Thursday, held the 30-year fixed at 7.40% unchanged from last week and showed the 15-year at 6.71%. Zillow rates provided to NerdWallet showed the average 30-year fixed slightly higher than Wednesday but still below a week ago.
CME FedWatch pricing cooled on an October 28 hike after the equity-driven bond bid, though futures still imply at least one more quarter-point increase by year-end with the fed funds range currently 3.75% to 4.00%. For borrowers shopping now, Thursday’s drop is welcome after this week’s inflation volatility, but Mortgage News Daily cautioned that without a sustained economic slowdown the rally could fade as quickly as it arrived.
Sources
- U.S. Bureau of Labor Statistics — Producer Price Index Summary, September 2026
- Mortgage News Daily — Exciting Times, But Don't Get Too Excited (Oct 15, 2026)
- Mortgage News Daily — MBS Dashboard / Current Mortgage Rates (Oct 15, 2026: 30-year 7.33%)
- Freddie Mac — Mortgage Rates Hold Steady at 7.40%
- CNBC — Treasury yields slide as investors flee to safety of bonds amid tech rout
- NerdWallet — Mortgage Rates Today, Thursday, October 15, 2026
- Reuters via Economic Times — US Treasury yields fall sharply on AI jitters