30-Year Fixed Mortgage Rate Holding Steady at 3.58 Percent, Zillow Says

30-Year Mortgage Rate30-year fixed-rate mortgages climbed by just one basis point on the Zillow Mortgage Rate Ticker in the week ended January 20, 2015 and remained at their lowest levels on record in 20 months.

According to Zillow’s data, 30-year FRMs are now at 3.58 percent, up just a sliver from the previous week’s reading of 3.57 percent. 30-year FRMs had fluctuated around the 3.63 percent range at the start of the wraparound week, and had gone as low as 3.46 percent on Thursday, but had shot back up to the current rate at the week’s conclusion on Tuesday. This volatility continued a familiar trend, wherein rates could move up or down drastically, before going the opposite direction before the end of the wraparound week.

As for other mortgage types covered, 15-year fixed-rate mortgages remained under the 3 percent mark at a slightly higher average of 2.92 percent, while 5/1 adjustable-rate mortgages finished the week at 2.83 percent.

In a statement, Zillow vice president of mortgages Erin Lantz acknowledged the fickle nature of mortgage rates, but predicted a more stable environment for the coming week. “Despite substantial volatility, rates remained essentially flat last week, holding near 20-month lows,” Lantz commented. “With minimal incoming data this holiday-shortened week, we expect little rate movement as the markets look to the President’s State of the Union address and the European Central Bank’s Thursday policy meeting.”

For this week’s seasonally adjusted Mortgage Bankers Association Weekly Application Index, Zillow sees this important metric dropping 5 percent from the previous week; this would, if the prediction rings true, follow soon after some drastic increases that took place during the holiday season. Zillow uses the previous week’s MBA Weekly Application Index data, as well as loan requests made on its own website, to forecast the Weekly Application Index, though only for purchase loans with seasonal adjustment.

Once again, individual mortgage rate activity per state was quite unpredictable, with one major state reporting a substantial increase, and another one reporting a huge drop in rates. In Washington state, 30-year FRMs were up by a comparatively high ten basis points, rising from 3.57 percent to 3.67 percent. Interest rate increases were also pronounced in Illinois, where 30-year FRMs went up seven basis points from 3.55 percent to 3.62 percent, and in New York, where rates on 30-year fixed mortgages rose six basis points from 3.65 percent to 3.71 percent.

Also, 30-year FRMs moved up five hundredths of a percentage point from 3.55 percent to 3.60 percent in Texas and Florida. Smaller mortgage rate increases were reported in California (3.56 percent to 3.58 percent) and Colorado (3.53 percent to 3.54 percent).

As for states that reported a decline in mortgage interest rates, things were a bit strange in the Garden State, as 30-year FRMs slid 16 basis points from 3.70 percent to 3.54 percent in New Jersey. This was a huge contrast to the slim one basis point decline in Massachusetts (3.55 percent to 3.54 percent). Mortgage rates held steady at 3.56 percent, not moving a single hundredth of a percentage point, in the state of Pennsylvania.