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Rates hold at 7.22% over a quiet weekend before PCE

Bankrate's 30-year sits unchanged at the top of its 90-day range, which makes this a good week to show buyers the 15-year alongside it.

Sunday, September 27, 202610Y Treasury 5.17%
30Y fixed
7.22%
-2bps today
15Y fixed
6.60%
7d +8bps
5/1 ARM
6.85%
30d +37bps
Now

Bond market quiet today — markets have been closed since Friday, and there is no new catalyst to add to what this week already delivered. Bankrate's conventional 30-year is 7.22%, unchanged from Saturday and up ten basis points from 7.12% a week ago. The 10-year last closed Friday at 5.17%, and Mortgage News Daily's index is parked at 7.43%. Freddie Mac's weekly PMMS, the survey behind the 7% headlines, printed 7.03% on Thursday, up eight basis points on the week and 37 over four weeks. Whatever lenders do with Friday's MBS bounce shows up in Monday's sheets, not today's.

Next

This week decides it. Case-Shiller publishes Tuesday, September 29; BEA's August PCE lands Wednesday, September 30; Freddie's survey and jobless claims follow Thursday, October 1 (claims last printed 197,000); and the September jobs report arrives Friday, October 2, with unemployment last at 4.1%. The next FOMC meeting is October 27–28 and carries no new dot plot, so PCE and payrolls are the two numbers that can move pricing before then. A soft pair gives Friday's bounce room to run; a hot pair puts the 7.22% ceiling in play again.

Range

On range, the conventional 30-year is at the top of both windows — 6.73%–7.22% over 30 days (average 6.95%) and 6.47%–7.22% over 90 (average 6.77%, 86 observations). The lens worth using today is term, not product. Bankrate's 15-year is 6.60%, 62 basis points under the 30-year and at its own 90-day high (range 5.85%–6.60%). On a $400,000 loan the 15-year runs about $3,507 a month in principal and interest against about $2,721 for the 30-year — roughly $786 more a month, but about $231,000 in total interest over the life of the loan versus about $579,000. Jumbo is the other end: Bankrate's jumbo 30-year is 7.31%, only nine basis points over conventional and at the top of its range since that series resumed on August 19 (6.74%–7.31%).

Do

The focus today is purchase borrowers with room in their budget — move-up buyers carrying equity from a sale, and dual-income households whose debt-to-income leaves headroom — who have only ever been shown a 30-year. At a 7%+ conventional rate, the 15-year's lower rate and faster payoff is a real conversation for the buyer who can carry the payment. For anyone floating, hold the lock-or-float call for Wednesday afternoon, after PCE. Do this today: pick the five purchase clients with the strongest income-to-payment ratio in your pipeline and send each a two-line comparison — their payment and lifetime interest on a 30-year versus a 15-year at today's rates.

Paste-ready talking points

  • On a $400K loan, a 30-year payment runs about $2,721 a month in principal and interest this weekend.
  • Here is a small thing worth a look: a 15-year loan today carries a lower rate than a 30-year, and on $400K it saves about $348,000 in interest.
  • Waiting has had a price lately: on a $300K loan, the past month added about $99 to the monthly payment.
  • Buying with equity from a sale? A 15-year might fit your budget better than you think. Ask me to run it both ways.
  • Two big economic reports land this week. If you are under contract, let us plan a lock-or-float check-in for Wednesday.

Sample client message

Move-up buyers with equity from a sale
SubjectTwo ways to finance your next home, {client}

Hi {client}, as you plan your next purchase, I want to show you two ways to finance it. On $400K, a 30-year loan runs about $2,721 a month in principal and interest right now. A 15-year loan carries a lower rate today and would run about $3,507 a month on the same amount. That is a bigger monthly number, but the total interest you pay drops by roughly $348,000 and the house is yours free and clear in half the time. With the equity from your sale going into the down payment, the 15-year may fit more comfortably than you would expect. Reply with the price range you are looking at, and I will send both options side by side on your actual numbers so you can decide what feels right.