Zillow reported today that 30-year fixed-rate home loans inched up a bit higher in the latest week. Of course low mortgage rates typically boost mortgage origination and home loan activity. In addition, cash out refinancing typically puts more money into consumers pocket to help drive the economy. The Zillow Mortgage Marketplace published a article indicating that lower home loan rates also make homes more affordable as the housing market copes with the absence of government support. 30-year fixed rate loans are, the most widely used mortgages, were 4.30% on Tuesday afternoon, up from 4.28 % at the same time last week, according to . The MBA also reported that the 30-year fixed mortgage rate peaked at 4.34% on Friday. FHA rates also dropped.
Home mortgage rates on other types of mortgages were mixed. 15-year fixed mortgage rates were 3.86%, up from 3.85% the prior week. Rates for 5/1 adjustable-rate mortgages, or ARMs, set at a fixed rate for five years and adjustable each following year, were 3.27%, unchanged from the prior week.
Zillow’s rates are based on thousands of custom mortgage interest rates submitted daily to anonymous borrowers through the website. They are not marketing rates, or from a weekly survey. Mortgage rates, which are linked to yields on Treasuries and yields on mortgage-backed securities, appear poised to move lower. Yields move inversely to price. Treasuries rallied on Tuesday after the Federal Open Market Committee, the Federal Reserve’s policy-making arm, said it plans to reinvest principal payments from its mortgage holdings to buy long-dated U.S. debt.
