30-Year Fixed Mortgage Rate Returns to Record Low

Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 3.34 percent, down from 3.38 percent at this same time last week.

After peaking at 3.46 percent on Wednesday, the 30-year fixed mortgage rate dropped to 3.33 percent and hovered between 3.36 and 3.39 percent over the weekend, dropping to the current rate this morning.

“Rates dropped this past week after the Federal Reserve announced a more aggressive stimulus plan than most anticipated. The market expected some stimulus, but the Federal Reserve delivered more than expected, deciding to make QE3 ’unlimited‘ — with no defined end date — and coupling QE3 with a commitment to keep the federal funds rate close to zero through the middle of 2015,” said Erin Lantz, director of Zillow Mortgage Marketplace. “This combination of aggressive and unlimited stimulus programs drove rates down to near record lows, and although rates rebounded somewhat later in the week, they still remain significantly lower than prior weeks.”

“This week we expect rates to remain fairly flat since any economic news will likely be overshadowed by the ongoing impact of the Fed’s QE3 decision,” added Lantz.

Additionally, the 15-year fixed mortgage rate this morning was 2.71 percent, and for 5/1 ARMs, the rate was 2.45 percent.

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