30-Year Fixed Mortgage Rate Drops 10 Basis Points, Remains Slightly Above All-Time Low

Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 3.76 percent, down from 3.86 percent at this same time last week. On Sept. 22, the 30-year fixed mortgage rates dropped to 3.74 percent – the lowest recorded rate since Zillow Mortgage Marketplace launched in April 2008.

The 30-year fixed mortgage stayed below 3.9 percent for the entire week, hovering between 3.79 percent and 3.82 percent over the weekend. The rate then dropped to 3.74 percent yesterday before rising to the current rate early this morning.

“Concerns that Europe’s debt crisis will worsen by spreading beyond Greece to other euro zone countries, paired with the overarching depression of the financial markets, have kept mortgage rates at historically low levels as of late,” said Erin Lantz, Director of Zillow Mortgage Marketplace. “Although the launch of Operation Twist and the Fed’s new mortgage-backed securities buying efforts should be stabilizing factors, I expect volatility in the coming weeks related to either positive or negative news on the potential for Greek default.”

Additionally, the 15-year fixed mortgage rate this morning was 3.18 percent and for 5/1 ARMs, the rate was 2.7 percent.

What are the rates right now? Check Zillow Mortgage Marketplace for up-to-the-minute mortgage rates for your state.