The 30-year fixed mortgage rate on the Zillow Mortgage Marketplace is currently 4.27 percent, up eight basis points from this time last week. The 30-year fixed mortgage rate surged early last week, peaking at 4.33 percent on Thursday before dropping down near 4.28 percent, where rates hovered for the remainder of the week.
"Last week, rates surged after the Federal Reserve suggested it might increase the Federal Funds Rate sooner and more significantly than expected, surprising many market observers who look to this rate for guidance on where mortgage rates are headed," said Erin Lantz, director of mortgages at Zillow. "This week, we expect rates will inch up further on the momentum of last week's direction from the Fed and expectations of positive news from economic data scheduled for release."
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 3.22 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 2.87 percent.