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Rate Pulse Sep 8

The 6.84% hold breaks and jumbo pricing flips below conforming

Bankrate's 30-year added seven basis points to 6.91%, the top of both its 30-day and 90-day ranges, while the jumbo average slipped six basis points BELOW conforming for the first time in three weeks — two days before PPI.

Tuesday, September 8, 202610Y Treasury 4.77%
30Y fixed
6.85%
+8bps today
15Y fixed
6.22%
7d +5bps
5/1 ARM
6.53%
30d +2bps
Now

The 30-year broke its hold. Bankrate's conventional average printed 6.91% this morning, up seven basis points from the 6.84% it held Saturday, Sunday and Labor Day, and that is a fresh high for the series — above every print in the last 90 days. The driver is behind us rather than in front: August payrolls landed at +162,000 with unemployment unchanged at 4.1%, which is not a labor market asking the Fed for urgency, and the 10-year was 4.77% at its last published read on September 3. The rest of the move is positioning. Two inflation prints and a dot plot sit inside the next six business days, and the tape is pricing that in rather than waiting to be told.

Next

The calendar is the whole story from here. August PPI lands Thursday, September 10 at 8:30 a.m. Eastern, and August CPI Friday, September 11 at the same hour — back-to-back inflation reads with no cushion between them. Jobless claims come Thursday morning as well, and Freddie's PMMS resets the same day. Then the FOMC meets Tuesday and Wednesday, September 15 and 16, with a Summary of Economic Projections attached; the statement lands 2:00 p.m. Eastern Wednesday and the press conference follows at 2:30. A dot plot is the meeting that repositions the curve, not the one that confirms it. Nothing between now and Thursday morning is scheduled to move this market, which means the next real information arrives in about 48 hours.

Range

On the range, there is no soft way to read today. 6.91% is the top of the 30-day window (6.67% to 6.91%) and the top of the 90-day window (6.47% to 6.91%) simultaneously. The 30-day average is 6.75% and the 90-day average 6.67%, so today sits 16 basis points above the month and 24 above the quarter. PMMS, which reads a week behind, had the 30-year at 6.71% as of September 3, up five basis points on that week. Rates are not stabilizing and they are not coming down; they have been grinding higher since late August and today is the highest print of the run.

Do

Today's opportunity is not in the conventional book — it is in the jumbo one. Bankrate's jumbo 30-year came in at 6.85%, six basis points BELOW the conforming average, and that inversion is new: the jumbo premium has run a steady four to thirteen basis points ABOVE conforming every single day for the past three weeks. Conforming rose seven this morning while jumbo fell three, and the gap crossed. Treat it as one session, not a trend — this series is noisy and it can revert tomorrow — but a borrower sitting just over the conforming limit is being quoted better today than the borrower just under it, and that is not the assumption most pricing conversations start from. Gov-loan spreads held their usual shape: FHA at 6.49% and VA at 6.57% remain 42 and 34 basis points under conventional, and the 15-year at 6.31% keeps a 60-basis-point discount. Do this today: pull every in-flight file sized within roughly ten percent of your area's conforming limit and price it both ways before Thursday morning — the inversion is live now and PPI is the event most likely to close it.

Paste-ready talking points

  • On a $400,000 loan, today runs about $2,637 a month in principal and interest — roughly $19 more than yesterday.
  • Today is the highest number I have quoted since June. If you are waiting for better, you are waiting from the top, not the bottom.
  • Two inflation reports land Thursday and Friday morning. Your number can move before we get a chance to talk.
  • If your loan is bigger than the standard limit in your area, ask me to price it both ways this week — right now the larger-loan pricing is actually a touch better.
  • On $300,000 today is about $1,978 a month; on $500,000, about $3,296. Send me your number and I will run yours exactly.

Sample client message

Anyone with a lock decision in the next three weeks
SubjectWorth two minutes today, {client}

Hey {client} — quick and honest update. Rates moved up again this morning. On a $400,000 loan the 30-year is running about $2,637 a month in principal and interest, which is roughly $19 more than yesterday and the highest I have quoted since June. I am not telling you that to rush you. I am telling you because the opposite story — rates are falling, just wait — is the one going around, and it is not what I am seeing on my screen. Here is why today matters specifically. Two inflation reports come out Thursday and Friday morning, and the Fed meets next Tuesday and Wednesday. Any one of those can move your number before we have a chance to talk about it. If you are closing in the next few weeks, reply with your loan amount and I will run today's payment and tell you plainly whether I would lock it or not. If you are further out, no action needed — I will keep watching.

Mortgage Rates Rise to 6.91% as Jumbo Slips Below Conforming