Wednesday, July 25, 2012

US 30-year mortgage drops to 3.35%

The 30-year mortgage rate dropped to a new low and has declined consistently for much of the year, according to real-time tracking by property portal Zillow.

Based on data from Zillow Mortgage Marketplace, the 30-year fixed mortgage rate fell to 3.35 percent from 3.42 percent last week. This is the lowest seen since 2008, while the previous low of 3.39 percent was recorded on 10 July.

Erin Lantz, Director of Zillow Mortgage Marketplace, said: “Rates dropped to a new low this week on concerns about Spain’s deteriorating economy coupled with Moody’s downgrade of the stronger Eurozone countries.”

She added that the rate could hover at this figure as investors flock to the security of US mortgage-backed Treasury securities amid uncertainty in the Eurozone debt crisis.

At the same time, 15-year fixed rate mortgages declined to 2.8 percent from 2.85 percent last week while the rate for five-one adjustable-rate mortgages (ARM) fell to 2.52 percent from 2.54 percent.

Zillow’s real-time tracking is based on thousands of mortgage quotes submitted daily to anonymous borrowers via the company’s website. 

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