Zillow: Mortgage rates tick up slightly
Predicts mortgage application decrease of 2%
Borrowers seeking a mortgage through Zillow’s Mortgage Marketplace saw a slight increase in the interest rates they were quoted from last week to this week.
Current rate borrowers were quoted a fixed 30-year rate of 4.08% this week, up from 4.03% last week.
“Mortgage rates were subdued last week as ongoing geopolitical concerns and economic softness in Europe encouraged investors to buy U.S. mortgage-backed securities as a safe haven,” said Erin Lantz, vice president of mortgages at Zillow. “This week, we expect international headlines, rather than U.S. economic data, to drive any meaningful changes to mortgage rates.”
In Zillow’s weekly look at interest rates, the 30-year rate peaked at 4.17% last Thursday before trending back down to its current level. During the remaining period, the interest rate was mostly between 4.1% and 4.15%.
Additionally, the 15-year fixed mortgage rate as of Tuesday was 3.12%, and for 5/1 adjustable rate mortgages, the rate was 2.77%.
Zillow also posted a prediction for Wednesday’s announcement of the mortgage application data from the Mortgage Bankers Association. “Zillow predicts tomorrow’s seasonally adjusted MBA application index will show purchase loan activity to decrease by 2% from the week prior,” the company posted on its blog.