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Rate Pulse Aug 31

Month-end flows take the ten-year to a January 2025 high

Bankrate's 30-year held at 6.74% for a third day while Mortgage News Daily's index added six basis points to 6.87% — the survey lag, not a disagreement, ahead of a jobs week.

Monday, August 31, 202610Y Treasury 4.73%
30Y fixed
6.87%
+6bps today
15Y fixed
6.38%
7d +6bps
5/1 ARM
6.42%
30d 0bps
Now

Bonds sold off from just after the 8:00 am hour Monday and the character of the move pointed at month-end positioning rather than news. Mortgage News Daily put the ten-year Treasury just above 4.75% at the close, the highest close since January 2025, with UMBS 30-year 5.5 coupons off ten ticks at 98.91. MND's own 30-year index finished at 6.87%, six basis points above Sunday and its highest of the month. Bankrate's 30-year conventional survey — the level quoted here — printed 6.74% for a third consecutive day, unchanged, because the survey lags the session it is measuring. Do not read that flat print as a market that did not move; MND's ARM index tells the same story as the coupon, up nine basis points to 6.42%. This is Friday's Jackson Hole repricing carrying into the first full session rather than fading.

Next

The week ahead is where the direction actually gets set. Jobless claims land Thursday, September 3, and the employment report — unemployment rate and nonfarm payrolls — lands Friday, September 4. CPI follows the week of September 10. The FOMC then meets September 15 and 16, and that meeting carries a Summary of Economic Projections, so a fresh dot plot lands with the statement at 2:00 pm Eastern on the 16th. Two labor prints and an inflation print all clear before the committee sits down, which means a September pricing view built this morning has three chances to be wrong before the meeting. The level to watch is whether the ten-year holds above 4.75% into Friday — several recent sessions closed within a basis point or two of that mark, so a confirmed break needs a follow-through session, not a month-end close.

Range

Bankrate's 30-year at 6.74% sits almost exactly on the 30-day average of 6.73% and inside a 30-day band of 6.67% to 6.80%, so on a one-month view nothing has happened. Widen to 90 days and the picture changes: the band runs 6.47% to 6.82% with an average of 6.65%, which puts today's print in the upper third and nine basis points above the quarter's mean. Rates are modestly higher than they were a month ago and meaningfully higher than the 90-day low. On a $400,000 loan, the payment at 6.74% runs about $2,592 a month against roughly $2,520 at the 90-day low of 6.47% — about $72 a month, or $26,000 over the life of the loan, for having been on the wrong side of one quarter.

Do

The segment that matters today is purchase borrowers under contract with September closings and no lock. They are the ones exposed to a claims print, a jobs report, a CPI release, and a dot plot inside their contract window, and they are the ones for whom a 25-basis-point surprise turns into an underwriting problem rather than an inconvenience. Do this today: pull every unlocked file with a closing date on or before October 15 and get a lock-or-float decision on the record before Thursday's claims number, documented in the file either way.

Paste-ready talking points

  • On a $400,000 loan the payment today runs about $2,592 a month. On $300,000 it is about $1,944.
  • Rates are a little higher than a month ago, not lower. Anyone telling you to wait for a drop is guessing.
  • The jobs report comes out Friday. It is the single biggest thing that can move your number this week.
  • If your current rate starts with a 7, the gap is real enough to be worth twenty minutes.
  • Reply RATE and I will send a one-page payment breakdown on your actual loan amount.

Sample client message

Buyers under contract with a September or early-October closing and no rate lock
Subject{client}, a quick decision to make before Friday

Hi {client} — quick note, and there is nothing wrong. Rates ticked up a little to start the week, and there is a jobs report coming Friday that tends to move them one way or the other more than anything else this month. Since your closing is coming up, I would rather you make the lock decision on purpose than have it made for you by a headline. Right now, on a loan around $400,000, the payment works out to roughly $2,592 a month. If you want, I can run your exact number today and show you what locking now looks like next to waiting. Either choice can be the right one — I just want it to be a choice. Text me back with a good time this week and I will walk you through both.

Ten-Year at January 2025 High as Jobs Week Opens