The 30-year fixed mortgage rate is at 3.97 percent, according to a Zillow Mortgages report on Tuesday, a 12 percent increase over last week. The rate rose at the beginning of last week and stayed at the current rate for the rest of the week.
According to a separate report from the Mortgage Bankers Association, while mortgage rates are rising, so are mortgage applications. Last week, mortgage applications increased by 3.3 percent on seasonally-adjusted basis, and 16 percent unadjusted. The report states that the average loan size for purchase applications reached a high of $313,000, and 30-year fixed rate mortgage interest rates increased from 4.30 percent to 4.36 percent. The rise in mortgage rates is expected to be correlated with the anticipation of a possible federal rate hike.
“Mortgage rates surged last week to their highest levels in almost a month on the heels of a series of speeches by Federal Reserve officials suggesting that a rate hike is likely in mid-March,” said Erin Lantz, VP of mortgages at Zillow. “Friday’s jobs report is the headline event this week: a strong report would likely lock-in a March Fed hike and hold mortgage rates steady, while an exceptionally weak jobs report could push rates lower.”
At the state level, the current 30-year fixed mortgage rate is ranges from 3.95 to 3.98 percent in a sampling of states, while New York’s current rate is 4.08 percent, an 11-point change in basis points. Massachusetts experienced a larger change of 14 basis points, from 3.83 percent last week to 3.97 percent currently.
Data from Zillow on 15-year fixed mortgage rates also shows increase, as the current national average for 15-year fixed rate mortgages grew by 4 basis points from last week to 3.20 percent.
Zillow is a free lending marketplace for borrowers to connect with lenders to find loans and the best mortgage rate. Read the report from Zillow here.