According to Zillow, 30-year fixed-rate mortgages slipped seven basis points Tuesday, dropping from 3.62 percent to 3.55 percent. The interest rate was as low as 3.47 percent as of Sunday, or two days after the Labor Department released its monthly employment report, but had gone up to the current rate by Tuesday. 15-year FRMs were also down slightly, moving down to 2.79 percent, while 5/1 adjustable-rate mortgages ended the Wednesday-to-Tuesday wraparound week at 2.67 percent.
“Rates fell sharply around Friday’s highly anticipated jobs report, which showed much weaker job creation and modestly higher wages than expected,” explained Zillow vice president of mortgages Erin Lantz in her weekly statement. “Looking ahead we expect rates to be mostly flat, with reaction to last week’s headlines and international news driving rate movement this week.”
Zillow’s weekly mortgage rate updates are, according to the company’s press releases, “based on thousands of custom mortgage quotes submitted daily to anonymous borrowers” on the company’s website, and are not to be confused with conventional weekly surveys.
For today’s seasonally adjusted Weekly Application Index from the Mortgage Bankers Association, Zillow forecasts that purchase loan activity will be up by 2 percent from the week before. Zillow bases its weekly purchase index forecasts on loan requests made on the company website from the previous week, as well as that week’s MBA Weekly Application Index data.
In terms of individual activity per state, mortgage rates for 30-year FRMs took the biggest tumble in Colorado, where they had gone down by nine basis points from 3.61 percent to 3.52 percent. Florida and Texas had the second biggest weekly decrease among major states, as 30-year FRMs slipped from 3.65 percent to 3.57 percent in the former state and from 3.60 percent to 3.52 percent in the latter. 30-year fixed mortgage rates retreated seven basis points from 3.67 percent to 3.60 percent in New York.
As for the smallest decline among major states, 30-year FRMs lost just two hundredths of a percentage point in Massachusetts, falling from 3.58 percent to 3.56 percent.