Despite some predictions that mortgage interest rates would rise in the aftermath of the Federal Open Market Committee’s December announcement of an increase to the federal funds rate for the first time since June 2006, the exact opposite has happened, with interest rates falling to a two-year low, according to a new report from Zillow.
Zillow’s latest report on the interest rates borrowers are quoted on its mortgage marketplace showed that during the last week, mortgage interest rates hit their lowest level since 2013.
According to Zillow’s report, mortgage rates for 30-year fixed mortgages fell in the week that ended Tuesday, Feb. 2, with current rate borrowers being quoted on Zillow at 3.5%.
That’s down 11 basis points from the previous week.
“Mortgage rates fell last week, touching their lowest levels since mid-2013 before edging slightly higher on Monday,” said Erin Lantz, vice president of mortgages at Zillow. “This week, markets will look toward Friday’s monthly jobs report and should move upward if the data exceeds expectations.”
According to Zillow’s report, the 30-year fixed mortgage rate fell throughout the week, reaching 3.47% on Sunday before rising back slightly to the current rate of 3.5%.
Additionally, the 15-year fixed mortgage rate was 2.72%, and for 5/1 ARMs, the rate was 2.73%.