30-Year Fixed Rates Drop 16 Basis Points

The 30-year fixed mortgage rate on Zillow Mortgage Marketplace is currently 4.06 percent, a 16-basis-point drop from 4.22 percent at this time last week. The 30-year fixed mortgage rate steadily declined last week, leveling off near 4.12 percent during the weekend before falling to the current rate this morning. “Mortgage rates during the past week have fallen back to lower levels, helped by Federal Reserve vice chairman, Janet Yellen’s assurances before the Senate Banking Committee that Federal Reserve stimulus won’t be removed too quickly. This trend halves the increases of the prior two weeks,” said Stan Humphries, chief economist at Zillow. “Looking ahead, rates will be influenced by the Federal Reserve’s meeting minutes, scheduled for late Wednesday, as observers try to read the tea leaves to assess the likelihood of a December taper.” Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgage Marketplace site, and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey. The rate for a 15-year fixed home loan is currently 3.05 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 2.69 percent.