30-year rates at 16-month low

Interest rates are continuing to remain below 4 percent, with the rates for 30-year fixed mortgages at a 16-month low. That’s according to Zillow Mortgages, which reported that the current rate is 3.81 percent after having hovered around 3.85 percent for the majority of the week and then falling to 3.7 percent before climbing back up.

“Last week mortgage rates experienced dramatic inter-day volatility, falling Wednesday to their lowest level since May 2013 fueled by global economic concerns and the potential threat of an Ebola epidemic,” Zillow vice president of mortgages Erin Lantz said. “With little mortgage market-moving data scheduled to be released next week, we expect rates to remain stable.”

Zillow reported that the 15-year fixed mortgage rate is currently 2.97 percent, with a 2.80 percent rate for 5/1 ARMs. In addition, Zillow forecasts that tomorrow’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show that purchase loan activity is up by 5 percent from the previous week.

Meanwhile, Freddie Mac said that mortgage rates were down for a fifth straight week, which holds the possibility of bringing forth a wave of refinancing and even enticing Americans to purchase their first home of their own. Real estate data provider CoreLogic said that nearly half of all homes with a mortgage carry a rate of 4.3 percent or less, however, and for these homeowners that figure means that it isn’t worth it to refinance. However, these figures could certainly nudge reluctant buyers off the fence and into the active market before things cool down leading up to the holidays.

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