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Rate Pulse Sep 14

Thirty-year holds 6.90% a third day into Wednesday's Fed

Bankrate's 30-year has not moved since Friday and sits a basis point under its 90-day high, while the 15-year sits seven under its own — statement and dot plot Wednesday at 2:00 p.m. Eastern.

Monday, September 14, 202610Y Treasury 4.96%
30Y fixed
7.00%
+5bps today
15Y fixed
6.32%
7d +5bps
5/1 ARM
6.69%
30d +9bps
Now

Quiet tape, and worth saying so: Bankrate's conventional 30-year has printed 6.90% Friday, Saturday and again today, after 6.85% midweek and 6.84% a week ago. That is nothing on the day, 6 basis points on the week, 21 on the month. The move that mattered last week happened in the bond market rather than on the rate sheet — the 10-year Treasury closed Friday at 4.96%, 16 basis points above the 4.80% that opened a holiday-shortened week, with the VIX finishing at 17.6 against 15.8. Freddie Mac's PMMS read 6.76% as of September 10, up 5 on the week and 9 on the month: different survey, same direction. Nothing fresh has hit since Friday's close, and nothing will until Tuesday.

Next

The FOMC meets Tuesday and Wednesday, and this meeting carries a full Summary of Economic Projections. Statement and dot plot at 2:00 p.m. Eastern Wednesday, press conference at 2:30. The effective fed funds rate is 3.63%. Housing starts and building permits land Wednesday through Friday — last read was 1.239 million starts for July against 1.415 million prior, permits 1.433 million against 1.374 million — with jobless claims Thursday, running 206,000 against 207,000, and the PMMS print the same morning. The dot plot is the week's whole story; everything else is background unless it surprises.

Range

Today's 6.90% sits one basis point under the 90-day high of 6.91% and at the top of a 6.47–6.91 band running back to mid-June, against an 84-day average of 6.69%. The 30-day band is tighter at 6.67–6.91, averaging 6.77. What is worth noticing is where the short end has not followed: Bankrate's 15-year is 6.24%, seven basis points under its own 90-day high of 6.31% inside a 5.82–6.31 band, and the 30-year to 15-year gap of 66 basis points sits toward the wide end of its 59–69 range while having moved only 4 basis points in thirty days. The 30-year has done the climbing this summer. The 15-year has lagged it.

Do

That gap is today's conversation, and it reaches two segments the last two days did not. First, anyone who can carry the payment: on $400,000, a 15-year at 6.24% runs about $3,428 a month against $2,634 on the 30-year at 6.90% — $794 more each month, and roughly $331,000 less interest over the life of the loan. Second, the borrower sitting on a 15-year quote from earlier this summer, whose number has moved far less than the 30-year headlines would lead them to assume. Do this today: pull your last 60 days of quotes, isolate everyone who asked about a 15-year or mentioned paying the loan off faster, and send them the two payments side by side before Wednesday afternoon reframes every rate conversation you have this week.

Paste-ready talking points

  • On a $400K loan, the 30-year payment today runs about $2,634 a month. The same loan on a 15-year is about $3,428 — and saves roughly $331,000 in interest.
  • Rates have moved up, not down, over the past month. The payment on a $400K 30-year is about $56 higher than it was thirty days ago.
  • The Fed announces Wednesday afternoon. If you are closing within six weeks, this is the week to decide about locking your rate.
  • Here is the thing most people miss this week: the 15-year has climbed far less than the 30-year has this summer.
  • If I quoted you earlier this year and you set it aside, reply TIMELINE and I will run your number fresh today.

Sample client message

Borrowers who asked about paying off faster
SubjectTwo payments for you, {client}

Hey {client} — quick note before the week gets busy. Rates on the 30-year have crept up over the last month, but the 15-year has moved much less, and the gap between the two is wider than usual right now. On a $400,000 loan, that is roughly $2,634 a month on the 30-year against about $3,428 on the 15-year. The bigger payment is real, but it also cuts something like $331,000 of interest off the life of the loan. I know you mentioned wanting to be done with this sooner rather than later, so I wanted you to see both numbers side by side instead of just the headline one. If you want these run against your actual loan amount and timeline, reply with your target closing month and I will have it back to you today.

30-Year Holds 6.90% a Third Day Ahead of Fed Decision