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Rate Pulse Sep 6

The 30-year holds 6.84% into the week that decides September

Nothing moved over the weekend and Monday is Labor Day, but August PPI Thursday, CPI Friday the 11th and the Fed's dot plot on the 16th all land inside six business days — with Bankrate's 30-year sitting at the top of its 90-day range.

Sunday, September 6, 202610Y Treasury 4.77%
30Y fixed
6.91%
+1bps today
15Y fixed
6.31%
7d +5bps
5/1 ARM
6.53%
30d +2bps
Now

Nothing moved. Bankrate's 30-year survey reads 6.84% this morning, the same number it printed Saturday, and every other quote in the set is unchanged with it — 15-year 6.22%, FHA 6.48%, VA 6.53%, jumbo 6.88%. That is what a weekend looks like, and there is no catalyst hiding in it. The week that just closed did move things: by Bankrate's own series the 30-year is up about 10 basis points over seven days and 9 over thirty, and Freddie Mac's PMMS printed 6.71% Thursday, 5 basis points higher week over week. The 10-year finished at 4.77%, down 2 basis points on the day, and the VIX at 14.32 says the bond market is going into next week without much fear priced in. Friday's 162,000 payroll number is still the operative fact — it took the weak-labor argument off the table, and it left inflation as the only thing that can move the September meeting.

Next

Next: Monday is Labor Day and the market is closed, so the week is four sessions long and heavily back-loaded. August PPI lands Thursday the 10th at 8:30 a.m. ET, August CPI Friday the 11th at 8:30, and the FOMC meets the 15th and 16th with a Summary of Economic Projections attached — statement at 2:00 p.m. ET Wednesday the 16th, press conference at 2:30. That sequencing matters more than usual: CPI is the last major input the committee sees before it meets, and there is no second print to soften a surprise. Nothing between now and Thursday morning should move pricing on its own, which makes the first three days of the week your working days rather than your watching days.

Range

Range: 6.84% is the high of the 30-day window (6.67–6.84) and the high of the 90-day window (6.47–6.84) at the same time. Today sits about 10 basis points above the 30-day average of 6.74% and about 18 above the 90-day average of 6.66%. There is no version of this tape where a borrower is being quoted a good number relative to the last three months — the honest read is that we are at the expensive end of the range and have been drifting there for two weeks. If a borrower is waiting for the summer low to come back, that is a bet on Friday's print, not a plan.

Do

Do: the pivot worth making this week is away from rate and toward structure, because the level is not going to sell itself. Mortgage applications rose 0.8% last week and the ARM share climbed to 8%, its highest in five weeks — borrowers are already shopping the shape of the loan, not just the number on it. Within MND's own survey the 5-year adjustable is at 6.53% against a 6.89% 30-year, about 36 basis points of structure advantage, and Bankrate has FHA 36 basis points under conventional and VA 31 under. Those are real gaps for a borrower who does not fit the conventional box or does not intend to keep the loan ten years. Do this today: pull every pre-approval in your pipeline that was priced conventional 30-year by default, and identify the three where FHA, VA, or an ARM would change the payment enough to restart a stalled conversation before Friday.

Paste-ready talking points

  • On a $400,000 loan, today prices out around $2,618 a month in principal and interest. That is the number to plan against this week.
  • Rates are at the top of their summer range, not the bottom. Waiting for a better number right now is a bet, not a plan.
  • If your current rate starts with a 7, today is still about $111 a month better on a $400,000 balance. Worth a fresh look.
  • FHA is pricing about a third of a percent under conventional — roughly $95 a month on a $400,000 loan. Ask me if you qualify.
  • The August inflation report comes out Friday morning. Reply LOCK and I will tell you what your file should do before it lands.

Sample client message

Pre-approvals priced conventional 30-year that have gone quiet
SubjectA different way to run your numbers, {client}

Hey {client}, checking in before a busy week. Rates held steady over the weekend, and on a $400,000 loan today runs about $2,618 a month in principal and interest. I will be straight with you: that is the high end of where things have been all summer, not the low end, so I do not want to tell you to sit and wait for something better. What I would rather do is look at the loan a different way. Depending on how you qualify and how long you plan to stay in the house, an FHA or VA loan or a 5-year adjustable can come in noticeably lower than the standard 30-year — on a $400,000 loan that is somewhere around $95 a month, sometimes more. It is not right for everyone, and I will tell you plainly if it is not right for you. The August inflation report comes out Friday morning. Reply with your timeline and I will run all three options side by side, all costs included, before then.

30-Year Holds 6.84% Before August CPI and Fed Dot Plot