Zillow: Fixed-Rates Drop Over Last Week

The 30-year fixed-rate mortgage (FRM) on Zillow Mortgages is currently 4.08 percent, down five basis points from this time last week. The 30-year FRM hovered around 4.13 percent for most of the week, falling to 4.04 percent on Monday before rising to the current rate. “After holding steady for much of the week, rates dropped to three-week lows on Monday, driven down by political unrest in Hong Kong,” said Erin Lantz, vice president of mortgages at Zillow. “We expect rates to remain volatile this week as the European Central Bank will make an economic policy announcement on Thursday and U.S. employment data will be released on Friday.” Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages 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 3.18 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 2.95 percent.   Zillow predicts tomorrow’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity decreased by five percent from the week prior. Zillow combines loan requests made on Zillow Mortgages last week with the previous week’s Mortgage Bankers Association (MBA) Weekly Application Index to predict the MBA’s Weekly Application Index for purchase loans, which will be released tomorrow.