Following last week’s uptick in mortgage rates on the Zillow Mortgages ticker, interest headed higher again, but ever so slightly, for 30-year fixed-rate loan products.
Zillow’s report for the week ended February 17 shows 30-year fixed-rate mortgages climbing one basis point from 3.66 percent to 3.67 percent. The real estate portal’s data also indicates that rates had climbed more significantly early in the wraparound Wednesday-to-Tuesday week, but had gone down to the present level and stayed there for most of the week. 15-year fixed-rate mortgages ended the week at 2.88 percent, while 5/1 adjustable-rate mortgages were at 2.91 percent as of Monday.
In her weekly statement, Zillow vice president of mortgages Erin Lantz said that rates may continue to increase in the coming week due to global economic variables and their effect on the U.S. market. “Rates moved decisively higher early last week, continuing the previous week’s trend,” said Lantz. “With little domestic economic news scheduled for release, we expect rates to move slightly higher this week as uncertainty about Greece and the Eurozone continues to drive market movements.”
In the closing weeks of 2014 and the first few weeks of 2015, these concerns were quite instrumental in pushing mortgage rates downwards, though they were recently neutralized by an overwhelmingly positive January 2015 jobs report, hence last week’s uptick.
For today’s Mortgage Bankers Application Weekly Application Index predictions, Zillow forecasted that there will be no changes in seasonally adjusted purchase loan activity in this week’s report. Zillow bases its purchase index forecasts on loan requests made on the Zillow Mortgages website with the prior week’s official data from the MBA Weekly Application Index.
Looking at 30-year fixed-mortgage rate changes in individual states, it was a mixed bag this past week, with New York reporting a particularly large decline in 30-year FRMs. Rates, which were at 3.75 percent for the week ended February 10, dropped nine basis points to 3.66 percent in New York. 30-year FRM rates declined by a more modest two basis points in Illinois, as rates slid from 3.67 percent to 3.65 percent. Four states – Massachusetts, Pennsylvania, Texas, and Washington – reported declines of just one basis point, with rates dipping from 3.67 percent to 3.66 percent in all four states.
On the other side of the fence, mortgage rates were up by five basis points in Florida, as 30-year FRMs in the Sunshine State went from 3.65 percent to 3.70 percent. Interest rates were higher by three basis points in New Jersey, as 30-year FRMs moved from 3.67 percent to 3.70 percent. In California and Colorado, 30-year FRMs were two basis points higher – rates went from 3.65 percent to 3.67 percent in the former state, and 3.64 percent to 3.66 percent in the latter.
Zillow computes its real-time mortgage rates based on “thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site,” and stresses that these rates are not marketing rates or to be confused with a weekly survey, as they reflect “the most recent changes in the market.”