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Rate Pulse Aug 25

Quiet three-basis-point drift into a very loud Friday

Bankrate has the 30-year conventional at 6.75%, up from 6.72% and sitting a penny above its own 30-day average, with Core PCE and Warsh's first Jackson Hole keynote landing on the same morning this Friday.

Tuesday, August 25, 202610Y Treasury 4.74%
30Y fixed
6.70%
+1bps today
15Y fixed
6.07%
7d -2bps
5/1 ARM
6.31%
30d +7bps
Now

Bankrate's 30-year conventional printed 6.75% today, three basis points above yesterday's 6.72% after four sessions of essentially nothing. There is no print behind the move. The 10-year finished last week at 4.74% after dipping to 4.65% midweek, the VIX is calm at 15.13, and the Treasury buyback headlines that dominated last week's tape have stopped moving anything, which is Mortgage News Daily's read as well in its second straight "tune out the noise" recap. This is a market with nothing to trade until Friday, drifting a touch cheaper while it waits. Mortgage News Daily's own survey has the 30-year at 6.78% today for a second read on the same tape. Yesterday's pulse framed the week around builder credits doing the work a flat rate cannot; that still holds, and today adds a compliance wrinkle worth knowing about, because the seven-agency rescission of the 2022 special purpose credit guidance published this morning touches exactly the down payment assistance structures some of those builder and community programs sit on.

Next

Friday, August 28 is the whole week. Core PCE, the Fed's preferred inflation gauge, releases that morning, and Fed Chair Kevin Warsh delivers his first Jackson Hole keynote as chair the same morning at the symposium running August 27 through 29. July's minutes had three voting members arguing for a quarter-point increase and nobody arguing for a cut, so a firm PCE print plus a Warsh speech that echoes that posture is the path to a higher 10-year going into the long weekend. Before Friday the board is light: Case-Shiller today, jobless claims and the Freddie Mac survey Thursday. The next FOMC decision is September 15 to 16 and it carries a Summary of Economic Projections, so the dot plot returns and September's positioning starts getting written on Friday, not in two weeks.

Range

On the range, today's 6.75% sits one basis point above the 30-day average of 6.742% and eleven above the 90-day average of 6.644%, inside a 30-day band of 6.67% to 6.82% and a 90-day band of 6.47% to 6.82%. Call it the expensive half, seven basis points off the 90-day high and twenty-eight above the low. The more interesting line this week is the term structure. Bankrate's 15-year at 6.14% is sixty-one basis points under the 30-year and near the top of its own 30-day band of 6.03% to 6.17%, while Mortgage News Daily's 5/1 ARM at 6.38% is pinned at the ceiling of its 6.29% to 6.39% 30-day range. That leaves the ARM only thirty-seven basis points cheaper than a 30-year fixed, which is not enough discount to justify the reset risk for most borrowers. The 15-year is where the real spread lives right now, and it is the conversation nobody on your list has had this month.

Do

Two segments today. First, anything scheduled to close inside the next two weeks that is still floating: you are carrying Friday's event risk for a rate sitting above its own 90-day average, and the honest math is that the upside from waiting is thin while the downside is a genuine catalyst. Second, the payment-capable move-up borrower who has been staring at a 30-year quote. On a $400,000 loan the 15-year at 6.14% runs about $3,406 a month against roughly $2,594 on the 30-year, so it costs about $812 more monthly and saves roughly $321,000 in total interest. That is a real conversation for a household with income headroom, and it is not one they will start themselves. Do this today: pull every floating file with a closing date inside three weeks, and send each borrower a one-line lock recommendation before Friday's Core PCE, naming the date so they understand what you are protecting them from.

Paste-ready talking points

  • Rates barely moved this week. On a $400K loan the payment is about $2,594 a month, roughly $74 more than the best number we saw this summer.
  • Friday brings the biggest inflation report of the month. If you are closing in the next few weeks, this is the week to decide about locking.
  • Here is the one most people miss: the 15-year is running about six-tenths of a percent under the 30-year right now, which is a wider gap than usual.
  • If your current rate starts with a 7, the math has shifted enough to be worth a fresh look at your numbers.
  • Reply RATE and I will send you a one-page payment breakdown on your exact loan amount.

Sample client message

Buyers under contract who have not locked yet
SubjectQuick call on your rate before Friday, {client}

Hi {client}, quick heads up on timing. Rates have been sitting almost perfectly still for about a week, which is why you have not heard from me. That changes Friday, when a big inflation report comes out that has a real chance of moving the number in either direction. Right now on a $400K loan the payment is running about $2,594 a month. My honest read is that the room to improve by waiting is small and the risk of it getting worse is real, so for anyone closing in the next few weeks I am recommending we lock before Friday rather than roll the dice on one report. It costs you nothing to have the conversation. Reply with a good time today or tomorrow and I will walk you through your exact numbers, both ways, so you can make the call yourself.

Mortgage Rates Aug 25: 30-Year at 6.75% Before Core PCE