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Bonds open softer Monday as the 30-year holds 7.22% before PCE

Bankrate's 30-year starts the week at the top of its 90-day range, the 10-year is trading near 5.21%, and PCE and payrolls arrive Wednesday and Friday.

Monday, September 28, 202610Y Treasury 5.21%
30Y fixed
7.22%
-2bps today
15Y fixed
6.60%
7d +8bps
5/1 ARM
6.85%
30d +37bps
Now

The week opens with bonds a little softer. The 10-year is trading near 5.21% in early Monday dealing, up from Friday's 5.17% close, which gives back part of Friday's bounce before a single print has landed. Bankrate's conventional 30-year is 7.22% this morning, unchanged from Friday and ten basis points above the 7.12% of a week ago. Mortgage News Daily's index holds at 7.43%, where it has sat since Friday. Freddie Mac's PMMS, the weekly survey behind the 7% headlines, last printed 7.03%, up 8 basis points on the week and 37 over four weeks. There is no new print behind this morning's move; the data starts Tuesday.

Next

NEXT is where the week gets decided. 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 government is funded through December 11 under the stopgap signed September 2, so Friday's report is on schedule. The next FOMC meeting is October 27–28 with no new dot plot, which makes PCE and payrolls the two inputs that can reprice the curve before then. A soft pair gives Friday's bounce room to resume; a hot pair tests whether 7.22% is a ceiling or a step.

Range

On range, the conventional 30-year sits at the top of both windows — 6.74%–7.22% over the last 30 days (average 6.96%) and 6.47%–7.22% over 90 days (86 observations). Bankrate's FHA 30-year is 6.93% and its 15-year 6.60%, both at the top of their own ranges. On Mortgage News Daily's own index, the 5/1 ARM is 6.85% against a 7.43% 30-year, a 58-basis-point gap, with the ARM also at its 90-day high (6.21%–6.85%). Nothing on the sheet is cheap this morning, which turns the lock decision into a timing question.

Do

So the lens today is how much a small move is worth to a floating borrower. On a $400,000 loan, each eighth of a point is about $34 a month in principal and interest: 7.22% runs about $2,721, 7.095% about $2,687, and 7.345% about $2,755. A quarter point either way is about $68 a month. That is the scale of the swing a floater is exposed to across two prints this week, and it lands better in dollars than in rate. For anyone whose approval is tight on debt-to-income, an eighth higher can matter more than an eighth lower helps. Do this today: for every borrower you have floating, send a two-line note with their payment at today's rate and at a quarter point higher and lower, and ask them to decide by Wednesday afternoon, after PCE, whether to lock or wait for Friday's jobs report.

Paste-ready talking points

  • On a $400,000 loan, today's rate works out to about $2,721 a month in principal and interest.
  • A quarter-point move in either direction changes that payment by about $68 a month — worth knowing before you decide when to lock.
  • Two big economic reports land this week, Wednesday and Friday, and either one can nudge rates. If you're floating, let's pick your lock-or-wait plan now.
  • If your approval is tight on budget, locking protects the payment you've planned around. Want me to run your exact number?
  • Reply LOCK and I'll send your payment at today's rate, plus a quarter point higher and lower, so you can see the range in dollars.

Sample client message

Borrowers currently floating their rate
SubjectQuick rate check before a busy week, {client}

Hi {client}, a quick heads-up before a busy week. Two big economic reports come out Wednesday and Friday, and either one can move mortgage rates a little in either direction. On a $400,000 loan at today's rate, the principal-and-interest payment is about $2,721 a month. A quarter-point move up or down changes that by about $68 a month. I can run your own numbers at today's rate and at a quarter point on either side, so you can see exactly what's at stake in dollars. If protecting your payment matters most, we can lock today. If you'd rather see how Wednesday's report lands, let's talk Wednesday afternoon and make the call together. Reply with LOCK, WAIT, or CALL ME and I'll take it from there.