Zillow: Mortgage Rates Begin to Level Off

The 30-year fixed mortgage rate on Zillow Mortgages is currently 3.90 percent, up five basis points from this time last week. The 30-year fixed mortgage rate hovered around 3.92 percent for most of the week, spiking to 4.15 percent Thursday before settling around the current rate.

“Despite occasional inter-day volatility, rates remained stable last week as the Federal Open Market Committee minutes announced the end of its historic stimulus program,” said Erin Lantz, vice president of mortgages at Zillow. “This week, all eyes are on Friday’s jobs report which has the potential to shift rates if it reveals unexpected strength or weakness in the labor market.”

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 3.04 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 2.86 percent.  

Zillow predicts tomorrow’s seasonally adjusted Mortgage Bankers Association (MBA) Weekly Application Index will show purchase loan activity increased by 14 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.