Rates fell 8 bps to 7.24% this week. Here's what that means for your buyers' payment.

What to tell buyers about payment and budget this week

Tied to this week’s 7.28% forecast (range 7.13–7.43%). Net call for borrowers: Prepare. Last week’s call missed; this week’s grades Thursday. Informational, not advice. RateScore is not a lender; leave rate and lock questions to the buyer’s loan officer.

• Oil is the biggest reason rates are near 7% this week
  • Buyers will ask why rates are still near 7%. Oil is the biggest piece this week: it lifts inflation expectations and the 10-year, and mortgage rates follow.
  • Put it in budget terms: this week's 7.13–7.43% range is about $81/mo on a $400k loan (RateScore estimate).
  • Send the brief link, not a rate prediction. Rate and lock questions go to their lender.
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• Midterms Tuesday: bonds care about the deficit, not who wins
  • Election week can jolt rates for a few days. A 10–20 bp swing is about $27–$55/mo on $400k (RateScore estimate).
  • Tell buyers under contract to ask their lender how lock timing works around Nov 3. That's the lender's call, not yours.
  • Don't call the race. Talk about the payment.
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• Pulte's fee talk is real. It just isn't this week's rate
  • The FHFA fee changes being discussed aren't final and don't move the national average.
  • If a buyer is holding off for Washington to fix rates, show them the payment range and let them decide.
  • Purchasing power this week comes from price, down payment and credit far more than a one-week rate move.
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