Zillow: Fed Chair Announcement Causes Decline in Fixed-Rates

The 30-year fixed rate mortgage (FRM) on Zillow Mortgages is currently 3.70 percent, down six basis points from this time last week. The 30-year FRM fell early in the week, then hovered around 3.66 percent before rising to the current rate on Tuesday.

“Rates dropped dramatically early last week after Fed Chair Janet Yellen suggested it was unlikely the Fed would raise rates before June,” said Erin Lantz, vice president of mortgages at Zillow. “This week we expect rates to remain fairly steady, unless Friday’s jobs report comes in stronger than expected.”  

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 FRM is currently 2.88 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is at 2.85 percent.