Zillow: Fixed-Rates Drop Amid Euro Crisis

The 30-year fixed mortgage rate on Zillow Mortgages is currently 3.88 percent, down five points from this time last week. The 30-year fixed mortgage rate rose to 3.97 percent on Wednesday and hovered there throughout the holiday weekend, then fell to the current rate early this week.

“Mortgage rates jumped last Wednesday after Greece defaulted on its international debts, then fell early this week due to continued Greek instability, turmoil in Chinese stock markets, and unexpectedly strong global oil supplies,” said Erin Lantz, vice president of mortgages at Zillow. “Uncertainty over Greece’s future will continue to dominate headlines this week, but economic news elsewhere suggests interest rates will remain lower for longer.”

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 three percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 2.88 percent.