Drop in Mortgage Rates Mirror Fed Sentiment on Economy

The 30-year fixed-rate mortgage (FRM) on Zillow Mortgages is currently at 3.56 percent, down nine basis points from this time last week. The 30-year fixed mortgage rate dropped Wednesday, then rose to 3.69 percent Monday before falling to the current rate on Tuesday.

“Rates fell sharply last week after the Fed statement suggested that rates will remain lower for longer than expected,” said Erin Lantz, vice president of mortgages at Zillow. “We expect mixed domestic data to drive some small market movements this week, but mortgage rates should remain unchanged.”  

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 2.81 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 2.70 percent.