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Rate Pulse Aug 7

Payrolls contracted, the front end ripped, and 30-year pricing improved four basis points

July payrolls printed at negative 23,000 against an 80,000 consensus, taking the 2-year down more than six basis points and the national 30-year to 6.75% — still twenty basis points above where it sat a month ago.

Friday, August 7, 202610Y Treasury 4.62%
30Y fixed
6.77%
+1bps today
15Y fixed
6.61%
7d +1bps
5/1 ARM
6.36%
30d +7bps
Now

July nonfarm payrolls came in at negative 23,000 this morning against a consensus near 80,000, and the unemployment rate ticked down to 4.1% on a shrinking labor force rather than on hiring. The bond market read the payroll line and ignored the rest: the 2-year fell more than six basis points to 4.18% and the 10-year gave back about four to 4.62%. That front-end leadership is the tell — the hike premium that had been quietly building into the curve since last week's FOMC hold came out first. Yesterday's pulse made the point that bonds had rallied while rate sheets stayed put; today the rate sheet finally followed, with the national 30-year at 6.75% against 6.79% yesterday.

Next

On deck: CPI lands in the August 10–15 window and is now the single biggest variable, because a soft labor print plus a soft inflation print is the only combination that takes the hike conversation fully off the table. Jobless claims and the weekly Freddie Mac survey both land August 13, with housing starts and permits August 16–18. The next FOMC meeting is September 15–16 and it carries a Summary of Economic Projections, so every print between now and then feeds a dot plot that reprices the front end again. The wildcard remains oil — the Strait of Hormuz headlines that drove yields higher earlier this week can undo this move without any US data at all.

Range

On the range: 6.75% sits below the 6.686% thirty-day average and thirty basis points off the 6.82% ninety-day high, but it is still seven basis points above the 6.54% thirty-day low and thirty above the 6.45% ninety-day floor. That is a good day inside an expensive month — the 30-year is twenty basis points higher than it was thirty days ago and three higher than a week ago. Anyone framing this as a downtrend is going to look wrong on Monday if CPI runs hot. The 15-year at 6.12% and the 5/1 ARM at 6.34% both give more room than usual against the 30-year, and the FHA-to-conventional spread at 6.33% versus 6.75% is wide enough to be worth a second column on any borrower under a 700 score.

Do

The segment that matters today is the 7%-and-above cohort — borrowers who closed in the 2023 through early-2024 window and have watched every improvement evaporate before they acted. At 7.25% on a $400,000 loan, today's number saves roughly $134 a month; at 7.5% it is closer to $202. That is real enough to justify a call, and today gives you a reason for the call that is not "rates are down a little." Do this today: run today's pricing against every closed file above 7.10% and send the top twenty a payment comparison before the close of business, while the number on your sheet still matches the one you quote.

Paste-ready talking points

  • The jobs numbers came in weaker than expected this morning and mortgage pricing improved a little on the news.
  • On a $400,000 loan, today is about $11 a month cheaper than yesterday — small, but it is moving the right way for once.
  • If your current rate starts with a 7, today saves roughly $134 a month on $400,000 and about $100 on $300,000.
  • Straight talk: today is better than yesterday but still higher than a month ago, so this is a window, not a trend.
  • Reply RATE and I will run your actual number and send you a one-page payment comparison today.

Sample client message

Borrowers currently sitting above 7%
Subject{client}, worth a two-minute look this morning

Hey {client} — the jobs report this morning came in softer than anyone expected, and mortgage pricing improved with it. Nothing dramatic, and I want to be straight with you: today is better than yesterday but still a bit higher than it was a month ago, so I am not going to tell you rates are falling. Here is what does matter for you specifically. If your current rate is up around 7.25%, today's number on a $400,000 loan is roughly $134 a month less than what you are paying now — about $1,600 a year. On $300,000 it is closer to $100 a month. Whether that is worth doing depends on your closing costs and how long you plan to stay, and I can run both in about ten minutes. Want me to pull a fresh number on your file? Reply with your timeline and I will have the comparison to you before end of day.