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Hot PMI data sells off bonds, pushing rate sheets to 7.17%

The 10-year Treasury jumped 15 basis points to 5.11% on stronger-than-expected S&P Global business surveys, and Bankrate's conventional 30-year opened at a new 90-day high of 7.17%.

Thursday, September 24, 2026 30-yr 7.170%10-yr Treasury 5.104%

The day's signal came out of the bond market, not the newsroom. The 10-year Treasury closed September 23 at 5.11%, up from 4.96% a session earlier, and Mortgage News Daily puts the selloff squarely on S&P Global's flash business surveys: the composite PMI rose to 58.4 from 56, manufacturing to 57 from 53.9 against a 53.6 forecast, and services to 58.7 from 56.5 against a 56 forecast. Stronger activity data is the last thing a market already worried about inflation wanted to see. This morning Bankrate's conventional 30-year sits at 7.17%, up six basis points from yesterday, at the top of its 90-day range of 6.47% to 7.17%, and 42 basis points above the 6.75% it showed a month ago. MND's own daily index reads 7.26%, which it describes as matching the highest level since May 2024.

Yesterday's edition led with FHA's draft rewrite of its Minimum Property Requirements, with feedback open through November 6, and with MBA's weekly survey showing a 7.12% contract rate and refinancing at its slowest pace since February 2025. Neither has moved since, but the refinance picture now has one more session of higher rates behind it.

The rate move lines up with what the Fed has been saying. The FOMC raised its target range a quarter point to 3.75% to 4.00% on September 16, by a unanimous vote, and said inflation remains elevated. Since then Governor Michael Barr has said further policy adjustments are likely — National Mortgage News reads him as among the policymakers who expect at least one more increase before year-end — and Boston Fed President Susan Collins has flagged upside inflation risk. Two reads on where that goes: Mortgage Professional America reports a TD deputy chief economist arguing that market bets on further hikes may be running ahead of what the Fed will actually do, while the PMI surprise gave traders a reason to price more tightening, not less. Weekly jobless claims came in at 197,000 for the week ending September 19, against 198,000 the week before, so the labor data is not offering an offsetting soft signal either.

For pipelines, the next two weeks are dense. August PCE inflation lands September 30 and the September jobs report on October 2, and the next FOMC meeting is October 27–28, without a new dot plot. Freddie Mac's weekly PMMS also publishes today; last week's read was 6.95%, and it lags the daily surveys, so expect it to catch up to the move rather than lead it. On a $400,000 loan, the 42-basis-point climb in Bankrate's 30-year over the past month adds roughly $113 a month in principal and interest. Anyone floating into PCE and payrolls is betting on data that has just surprised to the upside.

On the agency side, Fannie Mae reissued its September Selling Guide announcement (SEL-2026-08) to move the implementation date for its rental income policy changes to December 1, 2026, giving lenders an extra month to update underwriting on files that count rental income. Fannie also added a training module on condo unit owners' insurance requirements alongside recordings of its updated property insurance webinars. At FHA, Ginnie Mae's Joe Gormley told HousingWire the agency is "very comfortable" with the current single-family mortgage insurance premium, so no MIP change is signaled for now. And Realtor.com's latest down payment report puts the Q2 2026 median at $27,100, or 13.7% of the price, down 9.2% from a year earlier.

pull every file with a rate lock expiring before October 2 and every floating borrower in underwriting, and call each one before noon with the new number, the dollar difference from their original quote, and a clear lock-or-float recommendation ahead of next week's PCE and jobs data.

What this brief is built on

1
Mortgage News Daily — MBS18h ago

Why Bonds Sold Off So Severely Today

Why Bonds Sold Off So Severely Today The only number higher than the amount of bonds sold today is the number of people rushing to judgment about "WHY." It wasn't a diesel export ban (or lack thereof), higher oil prices, or the 5yr Treasury auction (see today's recap video if need proof). The initial pop at 9:45am was…

2
Fannie Mae News1d ago

More time to implement rental income policy changes

Give your organization additional flexibility to prepare for the upcoming rental income policy changes. The September Selling Guide announcement has been reissued to revise the implementation date for these changes to Dec. 1, 2026.

3
National Mortgage News1d ago

Fed's Barr: 'further policy adjustments are likely'

Federal Reserve Gov. Michael Barr appears to be among the majority of monetary policymakers who foresee at least one more rate hike before the end of the year.

4
Mortgage Professional America19h ago

Fed's Collins: inflation may stay elevated after September hike

Boston Fed president signals upside inflation risks after backing the September rate increase

5
HousingWire — Mortgage3h ago

Ginnie Mae’s Gormley signals no change to FHA MIP for now

Joe Gormley calls the current structure for single-family and reverse mortgages ‘comfortable’

6
Mortgage Professional America23h ago

Fed rate hike bets may be running too hot, a TD economist warns

TD's deputy chief economist sees the Fed stopping short of what traders expect

7
Fannie Mae News1d ago

A new module on condo unit owners' insurance requirements.

Recordings of the Updated Property Insurance Requirements webinars.

8
Realtor.com Research5h ago

Down Payments Pick Up But Remain Lower than Previous Year

Down payments surge seasonally, but notch lowest Q2 level since 2021. The median fell to $27,100 and 13.7% in Q2 2026, down 9.2% and 0.6 ppts year-over-year, though they rose from Q1 and remained above pre-pandemic norms.