30-Year Fixed Mortgage Rate Hits New Record Low For Second Consecutive Week
Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 3.59 percent, down from 3.65 percent at this same time last week.
This represents the lowest rate reported since Zillow Mortgage Marketplace launched in April 2008 and the first time rates have dropped below 3.6 percent. The previous low was 3.65 percent, first reported one week ago on May 8. The 30-year fixed mortgage rate hovered between 3.6 and 3.66 percent for the majority of the week, dropping to the current rate this morning.
“Rates reached a new low on concerns that a disorderly departure of Greece from the euro zone might trigger turmoil in other European economies, pushing more investor demand away from European debt and towards the relative security of U.S. mortgage backed securities and Treasuries,” said Erin Lantz, director of Zillow Mortgage Marketplace.
“Headlines out of Europe will determine rate trends this coming week. We expect rates to remain at or slightly below this historically low level as Greece tries to form a new ruling coalition and European policymakers work to prevent worries about Greece from spreading to more systemically important countries,” added Lantz.
*The weekly rate chart illustrates the average 30-year fixed interest in six-hour intervals.