The 30-year fixed mortgage rate on Zillow Mortgages is currently 4.10 percent, up 13 percentage points from this time last week. The 30-year fixed mortgage rate rose steadily to the current rate on Friday, then hovered there for the rest of the week.
It means mortgage rates are at their highest point in recent memory, although they are still very low compared to historical rates. At the current average rate, you’ll pay principal and interest of $487.85 for every $100,000 you borrow. That’s $5.23 higher compared with last week.
Industry analysts have been warning for several months now that we can expect a hike in mortgage rates this year, and that certainly appears to be happening. Of course, any significant rise would likely have a big impact on housing markets, potentially putting off some prospective buyers.
According to Erin Lantz, vice president of mortgages at Zillow, mortgage rates rose by around 10 basis points in the last week after strong labor market data solidified expectations for the FOMC to lift interest rates this week.
“Though a move by the FOMC on Wednesday is largely already priced into markets, rates should move somewhat higher after the announcement, particularly if forward looking statements are hawkish,” Lantz said. “While the Fed is likely to dominate markets’ attention this week, smaller potential risk events include U.S. inflation and retail sales data on Wednesday morning and Dutch elections mid-week.”
Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey.
The rate for a 15-year fixed home loan is currently 3.26 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 3.07 percent.
Below are current rates for 30-year fixed mortgages by state, for the top ten real estate markets in the U.S.
Additional states’ rates are available on Zillow’s mortgage site.