Zillow Mortgage Marketplace: Biggest Rate Hike in 10 Months
Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgages at 4.19 percent, up from 4.05 percent at this same time last week. The spike of 14 basis points was the largest rate hike since November 2013. The 30-year fixed mortgage rate rose steadily last week, peaking at 4.30 percent on Sunday before easing down to the current rate.
"Last week, rates hit a five-month high on anticipation that the Fed's policy statement might suggest an earlier than expected hike in the federal funds rate," said Erin Lantz, vice president of mortgages at Zillow. "This week, any significant movement in rates will stem from the Fed's Wednesday announcement, which could reveal how quickly the federal funds rate will rise after the stimulus program ends."
Additionally, the 15-year fixed mortgage rate this morning was 3.26 percent, and for 5/1 ARMs, the rate was 3.03 percent.
Purchase Mortgage Application Activity: Zillow predicts tomorrow's seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity to decrease by 4 percent from the week prior. To learn more about this Zillow analysis, click here.
What are the interest rates right now? Check Zillow Mortgages for mortgage rate trends and up-to-the-minute mortgage rates for your state.
[CORRECTION, Sept. 16, 2014: A headline on an earlier version of this article mistakenly said that interest rates this week were the highest in 10 months. ]