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Rate Pulse Sep 4

Payrolls land solid and the thirty-year tops its summer range

Bankrate's 30-year sits at 6.83%, the high of both its 30-day and 90-day windows, after August payrolls came in at 162,000 with July revised from a loss to a gain — the soft-data case for lower rates just got weaker.

Friday, September 4, 202610Y Treasury 4.79%
30Y fixed
6.84%
+1bps today
15Y fixed
6.22%
7d +5bps
5/1 ARM
6.53%
30d +2bps
Now

NOW. August payrolls printed 162,000 with the unemployment rate steady at 4.1%, and the revisions carried more weight than the headline: July flipped from a reported 23,000-job loss to a 21,000-job gain, and June moved up 11,000. The weak print that drove August's rally has been revised away. Wages rose 0.3% on the month and 3.1% over the year, which is not the kind of number that forces anybody's hand. Bankrate's 30-year average sits at 6.83% this morning, up three basis points from yesterday and five on the week; the 10-year Treasury closed at 4.79% on September 2, up from 4.66% in late August. Thursday's counterweight is still live — Fed Governor Christopher Waller said the Fed probably does not need to hike in September absent an inflation surprise, and fed funds futures held that repricing into the close. With fed funds at 3.63%, the argument on the table is hike-or-hold.

Next

NEXT. Two dates, and everything between them is noise. The August CPI report is expected between September 10 and 15, and the FOMC meets September 15 and 16 with a Summary of Economic Projections attached — the statement lands 2:00pm ET on the 16th, press conference at 2:30. Waller framed the September decision as hinging on that inflation reading, so CPI is functionally the meeting. Weekly jobless claims land the 10th and Freddie Mac's survey the same day. A cool CPI is the only realistic path to a lower thirty-year inside the next two weeks; a hot one puts the dot plot in play with rates already at the top of their range.

Range

RANGE. At 6.83%, today's thirty-year is the high of the 30-day window (6.67% to 6.83%) and the high of the 90-day window (6.47% to 6.83%) — 9 basis points above the 30-day average of 6.736% and 17 above the 90-day average of 6.66%. Freddie Mac's weekly survey printed 6.71% Thursday, its own year-to-date high on a different and lower-running scale. There is no refi window opening here. The 30-day move is only two basis points, so the story is not a spike; it is a rate that has quietly stopped coming down and is now sitting at the expensive end of everything it has done since June.

Do

DO. Today's segment is the government-loan borrower, and the spread is doing work nobody is talking about. Bankrate has FHA at 6.42% and VA at 6.48% against 6.83% conventional — 41 and 35 basis points of separation, worth about $109 and $92 a month on a $400,000 loan. Any purchase borrower under a 700 score, or any veteran you have been running conventional out of habit, deserves both scenarios side by side before a rate this high locks the decision for them. For in-flight files closing inside three weeks: you are locking at the top of the range into a CPI print and an FOMC meeting, which is a real coin flip, and the honest framing is that the downside catalyst already came and went this morning. Do this today: pull every pre-approval issued in the last 60 days with a FICO under 700 and run the FHA number beside the conventional one, then send both — the payment gap is large enough to change what house they are shopping for.

Paste-ready talking points

  • On a $400,000 loan, today's payment runs about $2,616 a month in principal and interest — roughly $8 more than yesterday.
  • If your current rate starts with a 7, today's number is about $181 a month cheaper on a $400,000 balance. Worth a fresh look.
  • Rates sit at the top of their summer range, not the bottom — worth talking about what a wait actually costs you.
  • FHA is pricing about four-tenths of a percent under conventional right now, about $109 a month on a $400,000 loan. Ask me if you qualify.
  • The August inflation report lands next week and the Fed meets right after. Reply LOCK and I will tell you what your file should do.

Sample client message

Purchase pre-approvals from the last 60 days with a credit score under 700
SubjectA second number for your file, {client}

Hey {client}, I ran your numbers again this morning and I want you to see two of them side by side. On the conventional loan we talked about, a $400,000 mortgage prices out around $2,616 a month in principal and interest today. On an FHA loan, that same $400,000 comes in closer to $2,507 — about $109 a month less, or roughly $1,300 a year. FHA carries mortgage insurance that conventional may not, so it is not automatically the better deal, but at your credit profile the gap is wide enough that it deserves a real comparison instead of an assumption. The other thing worth saying plainly: rates are at the top of where they have been all summer, not the bottom, so waiting for a better number is a bet rather than a plan. Reply with your timeline and I will send both scenarios in writing today, all costs included, so you can see the actual difference.