Zillow Inc. reported today that fixed 30-year home loans dipped once again to another record low last week. With rates tumbling again, it’s no surprise that refinancing and purchase mortgage activity rebounded as well. Bloomberg reported that mortgage lenders are busier than ever as loan applications volumes have risen as rates have fallen in the first week of the new year.
In reviewing its Mortgage Marketplace, the housing data company said, the 30-year fixed mortgage rate dipped to 3.71%, down from 3.73% a week earlier. Zillow said the 30-year mortgage rates moved between 3.7% and 3.74% for the majority of the last week, falling to 3.67% on yesterday before rising to the current interest rate this morning. It’s the 2nd week in a row that the Tuesday snapshot rate was the lowest the company has reported since the Zillow Mortgage Marketplace was launched in 2008. Many mortgage lenders have reported rates at or near historic lows lately. Worries about European debt have been keeping yields on U.S. Treasury bonds low. Mortgage rates tend to follow the yields.
Tuesday, Zillow also said that the rate for a 15-year fixed home loan is at 3.03% from 3.07% a week earlier. The rate for a 5-1 adjustable-rate mortgage is 2.59%, down from 2.65%; a 5-1 ARM has an initial rate that applies for the first five years of the loan and then adjusts annually.
