Mortgage Rates Still Low at 3.74%, But Volatility Likely

ZillowThe weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.

By Lauren Braun

Mortgage rates for 30-year fixed loans fell this week, with the rate borrowers were quoted on Zillow at 3.74 percent, down seven basis points from last week.

The 30-year fixed mortgage fell to 3.78 percent on Thursday, then hovered there before dropping to the current rate.

"Mortgage rates fell early this week as financial markets returned from the New Year's holiday to a collapse in Asian equities, which pushed capital flows to safe assets including U.S. mortgage bonds," said Erin Lantz, vice president of mortgages at Zillow. "We expect continued volatility this week leading up to Wednesday's publication of the December Federal Open Market Committee meeting minutes and Friday's all-important jobs report."

Additionally, the 15-year fixed mortgage rate was 2.96 percent. For 5/1 ARMs, or adjustable-rate mortgages, the rate was 2.97 percent.

Check Zillow for mortgage rate trends and up-to-the-minute rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.

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