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Rate Pulse Aug 2

Flat Sunday at 6.78% — the 15-year is the number to look at

No catalyst, no movement, and a third straight day of the same range read — so today the useful number is the 67 basis points between the 30-year and the 15-year.

Sunday, August 2, 202610Y Treasury 4.68%
30Y fixed
6.78%
+6bps today
15Y fixed
6.11%
7d +8bps
5/1 ARM
6.37%
30d +23bps
Now

NOW: Nothing moved. The 30-year is 6.78%, identical to Saturday's print, with the bond market closed and no release, filing or lender announcement to explain anything. This is the third day in a row that the honest summary of the tape is the same summary — up eight basis points on the week, up twenty-three on the month — and repeating it a third way would not make it more useful. So take the quiet at face value and use it to look at a part of the sheet that does not get read on a busy day.

Next

NEXT: The calendar restarts Thursday and it restarts hard. Jobless claims and the Freddie Mac weekly survey both land August 6 — claims moved to 197,000 from 188,000 on the July 25 read, so a second soft print starts to look like a trend, and Freddie's last survey was 6.66%, twelve basis points under where retail pricing sits now. The jobs report and the unemployment rate follow August 7, and that is the release with actual repricing power. The CPI window opens August 10. There is no FOMC until September 15-16, and that meeting carries a Summary of Economic Projections, so for the next six weeks the data sets the direction with no Fed event to absorb it. The VIX at 17.09, down from 20.66, says the market has finished processing the July hold rather than positioning for something.

Range

RANGE: 6.78% sits four basis points under the 90-day high of 6.82%, above the 30-day average of 6.63% and the 90-day average of 6.57%, with the 90-day low at 6.36% now well out of reach. That is the same read as Friday and Saturday. The more interesting spread today is inside the sheet: the 15-year is 6.11%, a full 67 basis points under the 30-year, which is wide by any recent standard. FHA at 6.34% and VA at 6.36% are running similarly rich against conventional, the 5/1 ARM is 6.37%, and jumbo is 6.91%. When the term and product spreads are this wide, the headline 30-year number describes fewer of your borrowers than usual.

Do

DO: The segment to work today is the borrower with real income coverage and a shorter horizon — someone ten or fifteen years from a planned sale or retirement who has been quoted only on a 30-year because that is what everyone quotes. On a $400,000 loan the 15-year at 6.11% runs about $3,400 a month against roughly $2,600 on the 30-year: about $800 more, and roughly $325,000 less interest across the life of the loan. That is not a fit for most files, but for the two or three where it is, it is the best number you will show anyone this week, and nobody else is showing it to them. Do this today: pull every pre-approval and in-flight file with a debt-to-income ratio under 32% and run a 15-year alongside the 30-year, so you walk into Monday with a second number ready for the three borrowers it actually fits.

Talking points: the shorter loan nobody quoted you on

  • On a $400K loan, a 15-year runs about $3,400 a month right now versus roughly $2,600 on a 30-year.
  • That extra $800 a month buys you about $325,000 less interest over the life of the loan.
  • Most people are only ever shown the 30-year. If you are planning to sell or retire inside 15 years, ask for both numbers.
  • Rates are about a quarter point higher than they were a month ago, so this is about structure, not about waiting for a better week.
  • Reply SHORT and I will run both side by side on your actual numbers, no application needed.

Sample client message

Pre-approved buyers and past clients with strong income coverage
SubjectA second number for you, {client}

Hi {client} — quick thought heading into the week. Almost everyone gets quoted a 30-year and never sees anything else, and right now the shorter loan is priced unusually well compared to it. On a $400,000 loan the 15-year is running about $3,400 a month versus roughly $2,600 on the 30-year. It is a bigger payment, no way around that, but it saves somewhere around $325,000 in interest over the life of the loan. If you are thinking about selling or retiring inside the next 10 to 15 years, it is worth seeing both numbers before you decide. Want me to run it on your actual loan amount? Reply with a rough number and your timeline and I will send both side by side today — no application, no credit pull.

30-Year Flat at 6.78%, 15-Year Prices 67 BPS Cheaper