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30-year slips to 7.26%, a fresh 30-day low, before jobs week

Bankrate's 30-year fixed finally broke its five-day hold at 7.28% and now sits 31 bps under its October 12 high, with refunding, claims and payrolls still ahead this week.

Tuesday, November 3, 202610Y Treasury 4.92%
30Y fixed
7.26%
0bps today
15Y fixed
6.72%
7d -8bps
5/1 ARM
6.70%
30d -4bps
Now

Bankrate's 30-year fixed reads 7.26% today, down 2 bps from the 7.28% it held for five straight readings and the lowest print in its 30-day window. The 10-year Treasury is trading near 4.92%, a touch above Monday's 4.91% close, so the move in Bankrate's number reflects lender pricing catching up to the 10-year's slide from Friday's 4.94% close rather than a new rally today. Mortgage News Daily's Monday close had bonds barely changed despite a sharp drop in oil and tech stocks. Freddie Mac's PMMS, a different weekly survey, printed 7.24% last Thursday, down 0.08 from the week before.

Next

Every catalyst this week is still ahead of us. Treasury's quarterly refunding is Wednesday, November 4. Weekly jobless claims and the next PMMS land Thursday, November 5. The October jobs report and unemployment rate arrive Friday, November 6, after September showed payrolls up 29,000 and unemployment at 4.2%. The CPI window runs November 10 through 15, following a 3.7% year-over-year reading for September, and the next FOMC meeting is December 8-9 and carries a dot plot. Dallas Fed President Lorie Logan has said at least two more hikes are needed, which is the backdrop a strong payroll number would land against.

Range

RANGE: 7.26% is now the bottom of the 30-day window (7.26% to 7.57%, average 7.42%) and 31 bps under the 7.57% high Bankrate printed on October 12. Over 90 days the picture is less generous: the window runs 6.67% to 7.57% with a 7.08% average, so today still sits on the expensive side of the summer range. On a $400K loan, today's payment is about $2,731 a month, about $85 less than at the October 12 high. Mortgage News Daily's lead ARM, a 7/6 SOFR ARM, holds at 6.70% in its own survey.

Do

DO: the borrowers to call are the ones who got a quote near the mid-October peak and stepped back. Their payment is now meaningfully lower than the number that scared them off, and Friday's report can move it either way. For in-flight deals closing within 30 days, the 30-day low is a reasonable place to lock rather than carry jobs-report risk into the weekend. Do this today: pull every borrower you quoted between October 8 and October 20 who did not lock, and send each one their updated monthly payment at today's rate.

Paste-ready talking points

  • On a $400K loan, today's 30-year payment is about $85 a month less than at mid-October's highest point.
  • On a $300K loan that gap is about $63 a month; on $500K, about $106.
  • The monthly jobs report comes out Friday and can move rates either way, so today's number is a known quantity if you're ready to lock.
  • If you got a quote in mid-October and stepped back, today's number is worth a fresh look.
  • Reply PAYMENT and I will send your updated monthly number today.

Sample client message

Borrowers quoted near the mid-October peak who did not lock
SubjectYour payment is lower than in October, {client}

Hi {client}, I wanted to send you a quick update. When we talked in October, rates were sitting near their highest point of the fall. They have eased since then, and on a $400K loan today's 30-year payment is about $85 a month less than it was in mid-October. That is roughly $1,000 a year back in your budget. A new jobs report comes out this Friday, and it can push rates up or down, so this is a good week to look at your real numbers instead of guessing. If you would like, I can rerun your exact scenario at today's rate and send you the new monthly payment, side by side with what we looked at before. Just reply with a good time today or tomorrow and I will have it ready for you.