The Zillow Mortgage Rate Ticker reported the average 30-year fixed mortgage rate dropped back down below 4 percent to 3.95 percent, remaining at historically low levels. The average 15-year fixed mortgage rate is currently at 3.32 percent, while the 5/1 adjustable-rate mortgage is 2.86 percent.
Erin Lentz, director of Zillow Mortgage Marketplace, said mortgage rates will likely remain at low levels, particularly when the new HARP program takes effect, allowing more homeowners to refinance their loans and take advantage of the low rates. This can lead to hundreds or thousands of dollars of savings, which can be put back into the economy.
While mortgage rates stayed low, mortgage applications increased over the last week. The Mortgage Bankers Association's weekly survey found applications jumped 4.9 percent in the week ending October 21, compared to the week prior.
In addition, the refinance index increased 4.4 percent from the previous week, and the purchase index grew 6.4 percent. Refinancing accounted for 77.3 percent of total applications, down from 77.6 a week before, while the adjustable-rate mortgage share of activity increased from 5.8 to 5.9 percent of total applications.
- Mortgage rates and applications drop
- Mortgage applications increase as rates remain low
- Applications drop again amid steady rates
- Mortgage applications increase
- Mortgage rates drop from recent high levels