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Rate Pulse Aug 20

Fed minutes show three votes for a hike as the 30-year holds 6.68%

July's minutes recorded the most FOMC dissents since 2016 — three regional presidents wanted a quarter-point increase — and Fannie Mae sharply raised its rate forecast, while Bankrate's 30-year moved a single basis point to 6.68%.

Thursday, August 20, 202610Y Treasury 4.71%
30Y fixed
6.77%
+1bps today
15Y fixed
6.61%
7d +1bps
5/1 ARM
6.36%
30d +7bps
Now

The 30-year came in at 6.68% this morning, one basis point above yesterday's 6.67% and inside a band it has not left in three weeks. The move is nothing; the context is not. July's FOMC minutes landed yesterday afternoon and showed a 9-3 vote to hold the funds rate at 3.50–3.75%, with Cleveland's Hammack, Minneapolis' Kashkari, and Dallas' Logan each preferring a quarter-point increase — the most dissents at a single meeting since September 2016. The minutes also record that many participants, not just the three who voted against, judged further tightening would likely be necessary if inflation does not decline. Fannie Mae's ESR group moved in the same direction on the same day, sharply raising its rate forecast through mid-2027 and abandoning a July outlook that had rates averaging 6.4% through the rest of this year. The tape barely reacted, which is the point: the market had already priced a Fed that is not cutting, and the minutes confirmed rather than surprised.

Next

What's on deck: core PCE on Aug. 28 is now the only print between here and the September meeting with real power to move pricing, precisely because the minutes made the hawkish case conditional on inflation. New home sales land Aug. 23–26, Case-Shiller Aug. 25, and jobless claims Aug. 27 — none of them are likely to reset the range on their own. Then the FOMC meets Sept. 15–16 with a Summary of Economic Projections attached. Given three dissenting votes in July, the dot plot at that meeting is the highest-leverage scheduled event of the quarter, and it is where a hawkish shift would become visible rather than inferred. Absent a soft PCE, the base case for the next three weeks is more of the same range.

Range

On the range: 6.68% sits below the 30-day average of 6.74% and seven basis points off the 30-day low of 6.61%, which reads well until you widen out. Against the 90-day window it is 21 basis points above the 6.47% low, 14 below the 6.82% high, and four basis points above the 6.64% 90-day average. Week over week the 30-year is down two basis points; month over month it is up twelve. That is a market that has stabilized in the high 6.6s, not one that is coming down, and any conversation that implies otherwise will not survive the borrower opening a rate site on their phone.

Do

Today's opening is in product spread rather than direction. The 15-year is at 6.03%, sixty-five basis points under the 30-year and within five of its own 30-day low — the widest practical case for a term switch in weeks for a borrower with the payment capacity. FHA sits at 6.43% and VA at 6.47% against conventional's 6.68%, a 21-to-25-basis-point note-rate advantage that has to be netted against mortgage insurance and the funding fee before it means anything, but is worth actually running rather than assuming conventional wins. Jumbo at 6.75% is only seven basis points over conventional, unusually tight, which makes the high-balance borrower who has been waiting for a better entry the most under-served segment on the board right now. Do this today: pull every borrower in your pipeline above the $832,750 baseline conforming limit and re-price them jumbo against high-balance conforming wherever the county limit allows it — at a seven-basis-point spread the structure that wins is not the one that won three months ago.

Paste-ready talking points

  • On a $400K loan, today's payment runs about $2,576 a month — roughly $32 more than a month ago. Flat, not falling.
  • Everyone is waiting for rates to drop. They have moved sideways for three weeks. Waiting has not paid off this summer.
  • A 15-year is priced about 0.65% below the 30-year right now — bigger payment, far less interest over the life of the loan.
  • Veteran, or buying with less down? VA and FHA pricing is running below conventional today. Worth checking which one your file actually fits.
  • Reply RATE and I will send your real number on a one-page payment breakdown. No application needed.

Sample client message

Borrowers I quoted earlier this summer
SubjectQuick rate update for {client} — honestly, not much has moved

Hey {client}, quick honest update: rates have gone sideways. Today's 30-year is essentially where it sat a week ago and about a tenth of a point higher than a month ago. On a $400K loan that works out to roughly $2,576 a month in principal and interest, give or take about $32 from the number we ran for you. I am sending this because I would rather you hear "no change" from me than sit there wondering. Two things are still worth a fresh look even in a flat market. The 15-year is priced about two-thirds of a point under the 30-year right now, and if you are eligible for VA or FHA, that pricing is currently below conventional. If your timeline has shifted at all — sooner, later, or a different price range — reply with where you are at and I will rerun your file today. Takes me ten minutes.