30-year mortgage rate hits lowest level since ’22

  • Mortgage rates fall to lowest level since September 2022
  • Applications for mortgages rise sharply
  • Market composite index up 14.2% in a week
  • Purchase index rises 5.4%
  • Refinance index increases by 24.2%
  • Average rate for 30-year mortgage drops to 6.15%
  • 15-year rate down to 5.42%
  • Adjustable-rate mortgages drop to 5.66%
  • Refinance applications up nearly 127% from last year
  • Home prices and low inventory remain challenges for buyers

Homeowners are rushing to refinance their mortgages as the 30-year mortgage rate reaches its lowest point since September 2022, according to the Mortgage Bankers Association. This comes ahead of a highly anticipated Federal Reserve rate cut on Wednesday. The market composite index, which measures mortgage application volume, rose by 14.2% for the week ending September 13, reaching 266.8 from 192.1 a year ago. The purchase index increased by 5.4%, while the refinance index jumped by 24.2%. The average rate for a $766,550 or less mortgage dropped to 6.15% from 6.29% the previous week. Jumbo loans saw a decrease to 6.41% (from 6.56%), and FHA mortgages fell to 6.12% (from 6.24%). The 15-year rate dropped to 5.42%, down from 5.71%. Adjustable-rate mortgages also decreased to 5.66% from 5.85%. Despite the drop in rates, home prices and low inventory continue to pose challenges for buyers.

Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about the increase in mortgage application volume due to falling mortgage rates. It includes relevant data on different types of mortgages and quotes from a reliable source, the Mortgage Bankers Association. The article also presents both positive and negative factors affecting home buyers and homeowners.
Noise Level: 3
Noise Justification: The article provides relevant information about the increase in mortgage applications due to falling mortgage rates and the impact on refinancing and home buying. However, it lacks a deeper analysis of long-term trends or possibilities, does not hold powerful people accountable, and could provide more actionable insights for readers.
Private Companies: Mortgage Bankers Association
Key People: Joel Kan (deputy chief economist at the MBA)

Financial Relevance: Yes
Financial Markets Impacted: Mortgage rates and mortgage application volume
Financial Rating Justification: The article discusses the impact of falling mortgage rates on homeowners and home buyers, as well as the anticipated rate cut by the Federal Reserve. It also mentions the increase in mortgage-application volume and refinance applications.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the article, and the main topic discusses the increase in mortgage applications due to falling mortgage rates.
Move Size: The market move size mentioned in the article is 14.2% for the market composite index.
Sector: All
Direction: Up
Magnitude: Large
Affected Instruments: Stocks, Bonds

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