Lenders quoting rates below 7%, boosting demand for refinancing

  • Mortgage refinancing surges nearly 20% as rates drop to five-month low
  • Lenders quoting rates below 7%
  • Overall market composite index rose 7.4% in the latest week
  • Purchase index rose 3.5% from last week
  • Refinance index increased by 19.4%
  • Average contract rate for the 30-year mortgage decreased to 7.07%
  • Rates expected to continue falling to the 6% range by the end of next year
  • Homeowners taking advantage of lower rates to refinance mortgages

Demand for mortgages rose this week as rates dropped to the lowest level since July. The overall market composite index rose 7.4% in the latest week, with the purchase index increasing by 3.5%. Refinancing activity surged by 19.4%, with lenders quoting rates below 7%. The average contract rate for the 30-year mortgage decreased to 7.07%. Economists expect rates to continue falling to the 6% range by the end of next year, stimulating home-buying. Homeowners are taking advantage of the dip in rates to refinance their mortgages.

Public Companies: Mortgage Bankers Association (MBA)
Private Companies:
Key People: Mike Fratantoni (Chief Economist and Senior Vice President at the MBA)

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Factuality Level: 8
Justification: The article provides factual information about the rise in demand for mortgages due to lower rates. It includes specific data from the Mortgage Bankers Association and quotes from the chief economist. The article does not contain any irrelevant or misleading information, sensationalism, redundancy, or opinion masquerading as fact. It also does not include any bias or personal perspective presented as universally accepted truth. Overall, the article provides accurate and objective information about the mortgage market.

Noise Level: 7
Justification: The article provides information on the recent trends in mortgage rates and their impact on buying and refinancing activity. It includes data from the Mortgage Bankers Association and quotes from the chief economist. However, the article lacks depth and analysis on the factors driving the rate changes and the potential consequences for the housing market. It also does not provide any actionable insights or solutions for readers.

Financial Relevance: Yes
Financial Markets Impacted: Mortgage market

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the impact of mortgage rates on buying and refinancing activity. While there is no mention of an extreme event, the information is relevant to the financial markets, specifically the mortgage market.

Reported publicly: www.marketwatch.com