Mortgage Rates Settle at 3.72% After Short Holiday Week
By Lauren Braun
Mortgage rates for 30-year fixed loans fell this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.72 percent, down from 3.73 percent at this time last week.
The 30-year fixed mortgage rate hovered between 4.01 percent and 3.75 percent for most of the week before settling at the current rate.
“Rates were volatile last week, primarily driven by low participation during the holiday-shortened week,” said Erin Lantz, vice president of mortgages at Zillow. “Aside from Monday’s sharp decline in rates due to bad news out of Greece, we expect continued volatility this week due to limited activity as lenders and consumers focus on the New Year’s holiday.”
Additionally, the 15-year fixed mortgage rate Tuesday morning was 2.98 percent. For 5/1 ARMs, the rate was 2.83 percent.
Purchase mortgage application activity
Zillow predicts Wednesday’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity decreased by 4 percent from the previous week. To learn more about this Zillow analysis, click here.
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