Reported for the first time last week, this represents the lowest rate reported since Zillow Mortgage Marketplace launched in April 2008. The 30-year fixed mortgage rate hovered between 3.49 and 3.54 percent for the majority of the week, dipping to the current rate this morning.
“Mortgage rates rose late last week on the heels of the Federal Reserve announcement saying that, in an effort to keep interest rates low, they plan to extend Operation Twist through 2012 rather than the more aggressive option of increasing the purchase of mortgage-backed securities,” said Erin Lantz, director of Zillow Mortgage Marketplace. “That option would have had the biggest impact in terms of keeping rates low. However, the slight increase in rates was short-lived, as rates are now back down below the 3.5 percent threshold they crossed for the first time last week.
“Looking to next week, news from the European Summit has the most potential to move markets, but unless the Summit produces unexpectedly immediate solutions, rates are unlikely to move much given the long-term nature of the European economic challenges,” added Lantz.