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Rate Pulse Sep 19

Thirty-year reaches 7.12% while FHA and VA pricing lags behind

Bankrate's conventional 30-year added three basis points to a fifth straight 90-day high, and FHA at 6.78% now sits 34 under it — a gap that was 24 in mid-August.

Saturday, September 19, 202610Y Treasury 5.01%
30Y fixed
7.12%
+1bps today
15Y fixed
6.49%
7d +19bps
5/1 ARM
6.75%
30d +30bps
Now

Bankrate's conventional 30-year printed 7.12% this morning, three basis points above Friday and the fifth consecutive session at a fresh 90-day high. The 10-year Treasury closed Friday at 5.01%, seven basis points above Thursday. Mortgage News Daily's Friday recap found no clean catalyst behind the afternoon selloff, noting reports of rate checks in the dollar-yen market without confirmed intervention, and reading the session largely as position squaring after a strong Thursday. The funds target has been 3.75%–4.00% since the September 16 hike, so nothing on the policy side moved this week — the long end did the work on its own.

Next

The week ahead starts thin and gets heavier. Case-Shiller lands September 22, new home sales between September 23 and 26, jobless claims and the weekly PMMS on September 24, and the August core PCE reading is due between September 23 and 30 — that last one is the print with the power to reset the curve. The next FOMC meeting is October 27–28 and it carries no Summary of Economic Projections, so the dot plot published on September 16 is the Committee's stated path until the December 8–9 meeting. Absent a soft core PCE, there is no scheduled event between now and the end of the month that argues for a lower 30-year.

Range

Today's 7.12% is the top of the 90-day range, which runs 6.47% to 7.12% across 85 observations, and the top of the 30-day range of 6.68% to 7.12%. The 90-day average is 6.72% and the 30-day average 6.83%, so the current quote sits roughly 40 basis points rich to the quarter and 29 rich to the month. The more useful read this morning is on the government side. FHA is quoted at 6.78% and VA at 6.81%, which puts them 34 and 31 basis points under conventional — in mid-August, when Bankrate's government series resumed on August 19, those gaps were 24 and 20. Government pricing has not followed conventional up at the same pace over the last month, and the 15-year at 6.49% sits 63 under the 30-year. Jumbo at 7.20% is only eight basis points over conventional, against 12 a week ago. Those government series have 32 observations since August 19, so they support a since-mid-August read and not a 90-day one.

Do

The segment that benefits today is anyone with VA eligibility or an FHA-eligible file who has been priced conventionally out of habit. On a $400,000 loan the conventional quote runs about $2,693 a month in principal and interest; the FHA quote runs about $2,602 before mortgage insurance, and the VA number is close to it with no monthly MI at all. That is a real conversation for a fence-sitter who has watched the conventional number climb $118 a month over the past 30 days. Do this today: pull every file in your pipeline where the borrower has VA eligibility or a sub-700 score sitting on a conventional pre-approval, re-run it on the government side, and send the two payments side by side.

Paste-ready talking points

  • On a $400,000 loan, today is about $2,693 a month in principal and interest. A week ago the same loan ran about $2,635.
  • If you have VA eligibility, the government-backed rate is running under the conventional one right now. Worth a look before you assume conventional is the answer.
  • Waiting has cost money this month, not saved it — the same $400,000 loan is about $118 a month higher than it was 30 days ago.
  • Builders are discounting: 38% cut prices in September and 66% used incentives, the widest since December. A builder credit can buy your rate down.
  • Reply RATE and I will send your actual number and monthly payment on one page.

Sample client message

Buyers who paused when rates crossed 7%
SubjectTwo numbers worth seeing, {client}

Hey {client} — quick update, and I want to be straight with you: rates moved up again this week, not down. On a $400,000 loan the conventional payment is around $2,693 a month right now, about $118 more than a month ago. Two things are worth five minutes of your time. First, if you have VA eligibility or your file fits FHA, government pricing is running noticeably under conventional at the moment, and I can show you both payments side by side. Second, builders are actively discounting — a lot of them are paying to buy a rate down on homes already standing, which can matter more than the headline rate does. Reply with your timeline and I will run your real numbers today and send them on one page.

30-Year Hits 7.12% as FHA and VA Pricing Lags Behind