Mortgage rates advanced in the latest Zillow Mortgages report, as interest rates on the popular 30-year fixed-rate mortgage loan climbed by six basis points from 3.56 percent to 3.62 percent. Rates for 30-year FRMs had gone up more significantly early in the week, settled at around 3.65 percent for most of the week, and had declined slightly to the current rate as of Tuesday. 15-year FRMs ended the wraparound week at 2.87 percent, while 5/1 adjustable-rate mortgages are now sitting at 2.75 percent.
“Rates increased last week on strong economic data from both the U.S. and Europe,” said Zillow vice president of mortgages Erin Lantz in a short and concise statement. “This week we expect some volatility as markets hold their breath for Friday’s monthly jobs report.” Lantz’s prediction is not unique, as other mortgage experts such as HSH.com’s Keith Gumbinger also expect choppier mortgage rate gyrations in this week’s report, also owing to similar variables as the ones Lantz mentioned.
Zillow bases its real-time mortgage rate data on “thousands of custom mortgage quotes” submitted to its site each day, and are, according to the company, not to be confused as marketing rates or weekly survey averages.
For this week’s Mortgage Bankers Association Weekly Application Index, Zillow foresees that purchase loan activity will be down 1 percent from the prior week, with seasonal adjustment taken into account. Zillow bases its MBA purchase index forecasts on loan requests made on the Zillow Mortgages website from the past week, as well as that week’s MBA Weekly Application Index.
30-year fixed mortgage rates were up in all major states listed in Zillow’s weekly report, with little variance in terms of upticks from the previous week. However, rates increased most prominently in Florida, where 30-year FRMs moved up eight basis points from 3.57 percent to 3.65 percent. In Colorado, 30-year FRMs advanced seven basis points from 3.54 percent to 3.61 percent. Conversely, rate increases were most muted in Pennsylvania, as 30-year fixed home loans in the state were up by just four hundredths of a percentage point, from 3.54 percent to 3.58 percent. New Jersey (3.58 percent to 3.63 percent) and Texas and Washington state (both 3.55 percent to 3.60 percent) all experienced five-basis point upticks in 30-year FRMs.