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Thirty-year hits 7.17% as a PMI surprise lifts the 10-year to 5.11%

Bankrate's 30-year, 15-year and MND's 5/1 ARM all sit at the top of their 90-day ranges, and August PCE on September 30 and payrolls on October 2 are the next two tests.

Thursday, September 24, 202610Y Treasury 5.10%
30Y fixed
7.17%
+9bps today
15Y fixed
6.54%
7d +19bps
5/1 ARM
6.76%
30d +30bps
Now

Bankrate's conventional 30-year is 7.17% this morning, up six basis points from 7.11% yesterday and eleven from 7.06% a week ago. The driver was Wednesday's selloff: S&P Global's flash PMIs came in well above forecast — manufacturing 57 against 53.6 expected, services 58.7 against 56 — and the 10-year Treasury closed at 5.11%, up 15 basis points on the session. Rate sheets passed through less than half of that move so far: the 30-year-to-10-year spread narrowed to about 206 basis points from roughly 213 yesterday, which means lender pricing has room to catch up if yields hold here. MND's daily 30-year index is at 7.26%, and the 15-year on Bankrate rose three basis points to 6.54%. Weekly jobless claims at 197,000 for the week ending September 19 gave the bond market nothing soft to lean on.

Next

Next up is the week that matters. Freddie Mac's PMMS publishes today, after last week's 6.95%; it is a weekly survey and trails the daily move, so a higher read is the likely direction rather than news in itself. August PCE lands September 30 and the September jobs report on October 2. The Fed raised its target range to 3.75%–4.00% on September 16, and the next FOMC meeting is October 27–28, without a new dot plot. Governor Barr has said further adjustments are likely; a hot PCE print would reinforce that, and a soft one is the only near-term path to relief.

Range

On range, there is no cheap end to point at. The 30-year at 7.17% is the top of both its 30-day window (6.70%–7.17%, average 6.90%) and its 90-day window (6.47%–7.17%, average 6.75%), and 42 basis points above a month ago. The 15-year is at its 90-day high of 6.54% (low 5.85%), and MND's 5/1 ARM is at 6.76%, also the top of its 90-day range, leaving the ARM about 50 basis points under MND's own 30-year fixed. On a $400,000 loan the past month's climb adds roughly $113 a month in principal and interest; the past week alone adds about $32.

Do

The focus today is purchase borrowers under contract who have not locked, and anyone whose lock expires before the October 2 jobs report. Floating into PCE and payrolls from the top of the range is a bet that two reports reverse a trend the last three sessions confirmed. For borrowers who will hold the loan fewer than seven years, run the 5/1 ARM side by side; the half-point gap is real money on a larger balance. Do this today: call every unlocked purchase borrower closing before mid-October, show them today's payment next to the payment at last week's rate, and ask for a lock decision before September 30.

Paste-ready talking points

  • On a $400K loan, a typical 30-year payment today runs about $113 a month more than it did a month ago.
  • Rates moved up again this week: that same $400K loan costs about $32 more a month than seven days ago.
  • Two big economic reports land September 30 and October 2. If you are under contract, locking before then takes that uncertainty off your plate.
  • Looking at a $300K loan? The payment is about $85 a month higher than a month ago, so a fresh quote beats last month's number.
  • Plan to move or refinance within about seven years? An adjustable rate is running about half a point under a fixed right now, and it is worth a side-by-side.

Sample client message

Purchase borrowers under contract who have not locked
SubjectYour rate lock, {client}

Hi {client}, rates moved up again this week, and I want to make sure your payment does not drift further before closing. On a $400K loan, today's payment is about $32 a month higher than a week ago and about $113 higher than a month ago. Two major economic reports come out on September 30 and October 2, and either one can move rates in a day. Locking now means the number we agree on is the number you close with. If you would rather wait, that is a fair choice too, and I will walk you through what each path looks like for your loan. Reply with a good time today and I will send your current payment side by side with last week's so you can decide with real numbers.