The 30-year FRM ended the Wednesday-to-Tuesday wraparound week at 3.53 percent, a decline of five basis points from the previous week’s reading of 3.58 percent. Interest rates had dropped earlier in the week, before moving up to the present level for the rest of the week. 15-year fixed mortgages remained flat at 2.81 percent, while 5/1 adjustable-rate mortgages ended the week at 2.73 percent, also a comparatively flat figure.
“After dipping early last week on soft economic data, rates have been remarkably flat,” said Zillow vice president of mortgages Erin Lantz in a statement. “This week we expect rates to remain largely unchanged with no big data releases or economic news on the horizon.” Rates had declined last week and in the week prior on most weekly reports due to March’s employment statistics, which showed a paltry 126,000 jobs created after 12 straight months of 200,000 or more new jobs generated by the U.S. economy.
For Wednesday’s seasonally adjusted Mortgage Bankers Association Weekly Application Index, Zillow forecasted that purchase loan activity will be up 4 percent from the previous week. Zillow bases these purchase index forecasts on recent loan requests made on the company’s website and the previous week’s MBA Weekly Application Index.
Just like last week, there was a lot of variance in terms of mortgage rate changes in major states. In California, 30-year FRMs had lost a whopping 12 basis points, slipping from 3.69 percent to 3.57 percent. And while most other major states reported declines in 30-year fixed mortgage rates, the 30-year FRM was flat in Colorado, staying unchanged from the week before at 3.53 percent.
As for activity in these other major states, 30-year fixed mortgage rates were down by six basis points in Florida, Illinois, and Washington state, and by four basis points in Massachusetts, New Jersey, Pennsylvania, and Texas. 30-year FRMs in New York also ticked down quite modestly, edging down two basis points from the previous week’s 3.62 percent to the current week’s 3.60 percent.