Overview
- The Federal Reserve lowered the federal funds rate by 25 basis points to a range of 3.75% to 4.00%.
- After the announcement and Powell’s remarks, the average 30-year fixed rate jumped about 20 basis points to roughly 6.33%, according to Mortgage News Daily.
- Freddie Mac’s weekly survey showed the 30-year fixed at 6.17%, the lowest in over a year, though its multi-day averaging can miss rapid late-week moves.
- Analysts stressed that mortgage pricing follows the 10-year Treasury and economic data, and yields rose as markets reassessed the odds of a December cut.
- Refinance applications surged 111% from a year earlier, and adjustable-rate mortgages gained share near 10% with 5/1 ARM quotes around 5.66%.