The interest rate for a 30-year, fixed-rate mortgage spiked last week after the Federal Open Market Committee officially decided to conclude its more than two-year-old asset purchase program, but settled under 4%, according to a new report from Zillow (Z).
Current rate borrowers were quoted an average interest rate of 3.9% on Zillow’s Mortgage Marketplace in the week that ended Tuesday. When the QE3 officially ended last Wednesday, the 30-year FRM interest rate shot up, peaking at 4.15% on Thursday before settling back down to 3.9%.
“Despite occasional inter-day volatility, rates remained stable last week as the Federal Open Market Committee minutes announced the end of its historic stimulus program,” said Erin Lantz, vice president of mortgages at Zillow.
“This week, all eyes are on Friday’s jobs report, which has the potential to shift rates if it reveals unexpected strength or weakness in the labor market.”
Zillow also reported that the 15-year fixed mortgage rate rose above 3% last week, to 3.04% as of Tuesday morning. The rate for 5/1 adjustable rate mortgages was 2.86%.
Zillow reported slightly lower interest rates than the latest Primary Mortgage Market survey from Freddie Mac.
According to Freddie, the 30-year, fixed-rate mortgage increased above 4% and averaged 4.02% for the week ended Nov. 6, up from last week’s 3.98%. A year ago, the 30-yr, FRM came in at 4.16%.
Also rising was the 15-year, FRM, which averaged 3.21% compared to 3.13% a week ago and 3.27% a year ago.