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Rate Pulse Aug 9

Rate sheet flat into CPI week as spreads carry the load

The national 30-year is 6.76% for a second day, three basis points up on the week and twenty on the month, with the inflation print due inside the August 10-15 window.

Sunday, August 9, 202610Y Treasury 4.69%
30Y fixed
6.77%
+1bps today
15Y fixed
6.61%
7d +1bps
5/1 ARM
6.36%
30d +7bps
Now

Nothing moved today. The national 30-year is 6.76%, the same as Saturday, and the 10-year's last published close is still August 6 at 4.69% — Friday's session has not landed in the series. So the honest read is a quiet Sunday tape with no new catalyst since the payroll print. The one piece worth reading this weekend was Logan Mohtashami's spread work at HousingWire: spreads near 2.01%, and his argument is that at this 10-year level the spreads of 2023 and 2024 would have put the retail 30-year over 7% months ago. Set that next to yesterday's observation — that the market paid about three basis points for a contracting payroll number — and you get the real state of things. The level is being set by spread compression, not by a growth story and not by the 10-year. That is worth knowing because it is the part that can reverse on volatility alone, with no data behind it.

Next

CPI is the whole week. The release window runs August 10 through 15. Jobless claims land August 13, Freddie Mac's weekly survey the same day, housing starts and permits August 16 through 18. The July 28-29 FOMC is behind us; the next meeting is September 15-16 and it carries a Summary of Economic Projections, so the market gets one inflation print and one jobs report before it sees a dot plot. The level to watch is not a technical one — it is 6.64%, where Mohtashami's purchase applications start softening. We are twelve basis points above it, and that is the number that shows up in your pipeline before it shows up on a chart.

Range

On the range: 6.76% sits six basis points under the 90-day high of 6.82% and thirty-one above the 90-day low of 6.45%. The 30-day average is 6.70% and the 90-day average is 6.61%, so today is above both. Rich end of the range, not the cheap end, and up twenty basis points on the month.

Do

The last two pulses worked the conventional refi cohort, so today look at loan structure instead of rate level, because the spreads between products are doing more work right now than the month-over-month move. FHA is 6.28%, VA 6.30%, the 5/1 ARM 6.29%, conventional 6.76%, jumbo 6.85%. VA at forty-six under conventional with no monthly mortgage insurance is worth about $121 a month on a $400,000 note. FHA at forty-eight under is a bigger headline number, but MIP is the caveat that decides whether it actually helps on a given file. And jumbo-to-conforming at nine basis points is unusually tight, which means a borrower sitting just above the conforming limit is barely paying for it right now. The segment worth an hour today is the file that got quoted conventional and never had a second structure run against it. Do this today: pull your last thirty conventional pre-approvals, flag every VA-eligible borrower and every file within ten percent of the conforming limit, and re-run both payments before Monday's calls.

Paste-ready talking points

  • Today's payment on a $400,000 loan runs about $2,597 a month. That is roughly $132 less than the same loan at 7.25%.
  • If you served, the VA number today is running about $121 a month cheaper on a $400,000 loan, and it carries no monthly mortgage insurance.
  • New inflation numbers land this week. Worth knowing your number before they print rather than after.
  • Rates are about a fifth of a percent higher than a month ago. On $300,000 that is roughly $40 a month you would not have paid in July.
  • Most people never get a second loan type run on their file. It is a ten-minute check and it moves the payment more often than you would think.

Sample client message

Anyone quoted a conventional loan who may qualify for another structure
SubjectTwo ways to price your loan, {client}

Hey {client}, quick note — I was going back through files this weekend and yours stood out. When we ran your numbers, we priced it as a standard conventional loan. That was the right place to start, but it is not the only structure available to you, and the gap between loan types is wider than usual right now. On a $400,000 loan, the VA option is running about $121 a month cheaper than the standard one and carries no monthly mortgage insurance. Depending on your file, an FHA structure or a small change in loan amount can move the number too. It takes me about ten minutes to run it both ways and show you the two payments side by side. No obligation, nothing changes on your end. New inflation numbers land this week, so if you want today's number on paper before they print, reply with a good time to call and I will have it ready.