By Lauren Braun
Mortgage rates for 30-year fixed mortgages fell this week, with the rate borrowers were quoted on Zillow Mortgages at 3.76 percent, down from 3.77 percent at this time last week. The 30-year fixed mortgage rate hovered around 3.75 percent last week before settling at the current rate.
"Rates continued to slide last week and are now down more than a half of a percentage point from their mid-September peak," said Erin Lantz, vice president of mortgages at Zillow. "Strong economic data suggests rates should move higher, but weak demand for new loans has kept rates low. This week we expect to see some volatility as markets react to Friday's job report but anticipate rates to increase modestly by week's end."
Additionally, the 15-year fixed mortgage rate this morning was 2.97 percent. For 5/1 ARMs, the rate was 2.76 percent.
Purchase Mortgage Application Activity
Zillow predicts Wednesday's seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity increased by 15 percent from the week prior. To learn more about this Zillow analysis, click here.