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Mortgage rates drop to 3-year low ahead of Fed meeting

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A completed planned development is seen in Ashburn, Virginia, on Aug. 14, 2024.

Andrew Caballero-Reynolds | AFP | Getty Images

Mortgage rates dropped sharply Tuesday, as investors in mortgage-backed bonds seemed to buy in ahead of a widely expected rate cut by the Federal Reserve.

The average rate on the 30-year fixed mortgage dropped 12 basis points from Monday to 6.13%, according to Mortgage News Daily. That is the lowest level since late 2022.

“The overall set-up is reminiscent of September 2024 when rates were doing the same thing for the same reasons ahead of Fed meeting with a virtual 100% chance of a rate cut,” said Matthew Graham, chief operating officer of Mortgage News Daily. “Back then, mortgage rates moved paradoxically higher after the Fed rate cut. The same thing could happen this time, but it’s by no means guaranteed.”

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It also follows historical trends. In a video podcast for CNBC’s Property Play, Willy Walker, CEO of commercial real estate firm Walker & Dunlop said there have been similar trends in the past.

“If you go back to 1980 and the nine Fed rate cut periods over that 45-year period, the ones where the Fed cuts in a recessionary environment end up pulling down the long end of the curve, pull down the 10-year, pull down the 5-year,” Walker said. “In those where it’s not a recession, which is like right now, it does not impact long-term rates. And so as much as I’m expecting us to see at least a 25 basis point cut, and then probably another 25 basis point cut, even if you take 50 basis points out of the short end of the curve, I don’t expect it’s going to impact the long end of the curve very much.”

He added that he thinks yields are well below where they will be two or three weeks from now.

“I don’t try to predict where rates are going, but I think people … might buy on the rumor and sell on the news. I think you probably see the 10-year sell off a little bit after the Fed actually announces their 25 basis point cut,” Walker said.



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Northrop Grumman’s Cygnus XL cargo spacecraft suffers thruster issue on way to the International Space Station

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The debut mission of Northrop Grumman’s new jumbo cargo spacecraft didn’t go off without a hitch.

The company’s first “Cygnus XL” freighter suffered a thruster issue in orbit early Tuesday morning (Sept. 16), two days after launching toward the International Space Station (ISS) atop a SpaceX Falcon 9 rocket.



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A record supply load won’t reach the International Space Station as scheduled

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The damage occurred during the shipment of the spacecraft’s pressurized cargo module from its manufacturer in Italy. While Northrop Grumman hopes to repair the module and launch it on a future flight, officials decided it would be quicker to move forward with the next spacecraft in line for launch this month.

This is the first flight of a larger model of the Cygnus spacecraft known as the Cygnus XL, measuring 5.2 feet (1.6 meters) longer, with the ability to carry 33 percent more cargo than the previous Cygnus spacecraft design. With this upgrade, this mission is carrying the heaviest load of supplies ever delivered to the ISS by a commercial cargo vehicle.

The main engine on the Cygnus spacecraft burns a mixture of hydrazine and nitrogen tetroxide propellants. This mixture is hypergolic, meaning the propellants ignite upon contact with one another, a design heralded for its reliability. The spacecraft has a separate set of less powerful reaction control system thrusters normally used for small maneuvers, and for pointing the ship in the right direction as it makes its way to the ISS.

If the main engine is declared unusable, one possible option for getting around the main engine problem might be using these smaller thrusters to more gradually adjust the Cygnus spacecraft’s orbit to line up the final approach with the ISS. However, it wasn’t immediately clear if this was a viable option.

Unlike SpaceX’s Cargo Dragon spacecraft, the Cygnus is not designed to return to Earth intact. Astronauts fill it with trash before departure from the ISS, and then the spacecraft heads for a destructive reentry over the remote Pacific Ocean. Therefore, a problem preventing the spacecraft from reaching the ISS would result in the loss of all of the cargo onboard.

The supplies on this mission, designated NG-23, include fresh food, hardware for numerous biological and tech demo experiments, and spare parts for things like the space station’s urine processor and toilet to replenish the space station’s dwindling stocks of those items.



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Global Witness report: 80% of land defender deaths in Latin America

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BOGOTA, Colombia (AP) — At least 146 land and environmental defenders were killed or have gone missing around the world in 2024, with more than 80% of those cases in Latin America, according to a report released Wednesday by watchdog group Global Witness.

The London-based organization said the region once again ranked as the most dangerous for people protecting their homes, communities and natural resources, recording 120 of the total cases. Colombia remained the deadliest country, with 48 killings — nearly a third of cases worldwide — followed by Guatemala with 20 and Mexico with 18.

The number of killings in Guatemala jumped fivefold from four in 2023, making it the country with the highest per capita rate of defender deaths in the world. Brazil registered 12 killings, while Honduras, Chile and Mexico each recorded one disappearance.

“There are many factors that contribute to the persistent high levels of violence in Latin American countries, particularly Colombia,” Laura Furones, lead researcher of the report, told The Associated Press. “These countries are rich in natural resources and have vast areas of land under pressure for food and feed production. Conflict over the extraction of such resources and over the use of such land often leads to violence against defenders trying to uphold their rights.”

Since 2012, Global Witness has documented more than 2,250 killings and disappearances of land and environmental defenders worldwide. Nearly three-quarters occurred in Latin America, including close to 1,000 cases since 2018, when the region adopted the Escazu Agreement — a treaty designed to protect environmental defenders. The pact requires governments to guarantee access to environmental information, ensure public participation in environmental decision-making and take timely measures to prevent and punish attacks against those who defend the environment.

“The Escazu Agreement provides a crucial tool for Latin America and the Caribbean,” said Furones. “But some countries have still not ratified it, and others that have are proving slow to implement and resource it properly. Stopping violence against defenders will not happen overnight, but governments must ramp up their efforts toward full implementation.”

Indigenous resistance

The report noted that Indigenous peoples bore a disproportionate share of the violence. They accounted for around one-third of all lethal attacks worldwide last year despite making up only about 6% of the global population. Ninety-four percent of all attacks on Indigenous defenders documented in the report occurred in Latin America.

In Colombia’s southwestern Cauca region, Indigenous youth are working to ensure they will not be the next generation of victims. Through community “semilleros,” or seedbeds, children and teenagers train in environmental care, cultural traditions and territorial defense — preparing to take on leadership roles in protecting land that has come under pressure from armed groups and extractive industries.

“We are defenders because our lives and territories are under threat,” said Yeing Aníbal Secué, a 17-year-old Indigenous youth leader from Toribio, Cauca, who spoke to AP in July.

These initiatives show how communities are organizing at the grassroots to resist violence, even as Colombia remains the deadliest country for defenders.

Small-scale farmers were also heavily targeted, making up 35% of the victims in the region. Most killings were tied to land disputes, and many were linked to industries such as mining, logging and agribusiness. Organized crime groups were suspected of being behind at least 42 cases, followed by private security forces and hired hitmen.

Colombia one of the worst hit

The Amazonian department of Putumayo in southern Colombia illustrates many of the risks faced by defenders. With its strategic location bridging the Andes and the Amazon, the region is rich in forests, rivers and cultural knowledge. But it also sits at the crossroads of armed conflict, extractive projects and illicit economies. Armed groups have long used the Putumayo River as a trafficking route toward Brazil and Ecuador, where weak controls make it easier to move cocaine, minerals and laundered money.

An environmental defender there, who asked to remain anonymous out of fear of reprisals, told AP this has created one of the most hostile climates in the country.

“Defending rights here means living under permanent threat,” the source said. “We face pressure from illegal mining, oil projects tied to armed groups, deforestation and coca cultivation. Speaking out often makes you a military target.”

Andrew Miller of the nonprofit Amazon Watch said transnational criminal networks involved in drug, gold and timber trafficking have become a major force behind threats — and often deadly attacks — against environmental defenders.

“The security situation for defenders across the Amazon is increasingly precarious,” Miller said.

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The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.





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