Update on 30 year Mortgage Rates
Miami, Fl -- According to real estate website Zillow.com, interest rates on a 30 year fixed rate mortgage went higher this past week but still remained historically low. Low interest rates on mortgages will help lift home loan refinancing activity and put more cash into the hands of consumers in order to expedite the economy. With the lack of government support, these low interest rates also make homes more affordable.
According to Zillow Mortgage Marketplace, 30 year mortgage rates were 4.38% on Tuesday from the 4.37% compared the week before. Two weeks ago the rate was the lowest recorded since Zillow Mortgage Marketplace launched in April 2008. It hit an all time low of 4.35%.
Other types of mortgages had mixed rates. Fifteen yar fixed mortgage rates were 3.87%, down from 3.89% the week before. Rates for 5/1 adjustable-rate mortgages, or ARMs, set at a fixed rate for five years and adjustable each following year, were 3.37 percent, unchanged from the week prior.
The rates submitted by Zillow are based on thousands of custom mortgage quotes that are entered daily to unidentified borrowers through the website, and they imitate the most recent changes in the market.
Since the expiration of the popular homebuyer tax credit, the housing market has struggled to gain ground. With mortgage rates having a link to yields on Treasuries and mortgage backed securities, Treasuries are seeing a decline in demand.