For the week ended Tuesday, July 29, 2014, the 30-year fixed mortgage rate on Zillow’s real-time tracker (now known simply as Zillow Mortgages) moved up seven basis points from 3.97 percent to 4.04 percent. This was actually lower than the peak level of 4.17 percent reached on Monday – a significant 20 basis point increase over the previous week – though rates settled back down to the present rate by Tuesday morning. Also increasing modestly were 15-year fixed mortgage rates, which closed the wraparound week at 3.05 percent. 5/1 adjustable-rate mortgages, or ARMs, were at 2.83 percent as of Tuesday.
“Last week, mortgage rates regained some upward momentum after anxiety triggered by tension in the Middle East and the MH17 flight disaster subsided,” commented Zillow vice president of mortgages Erin Lantz, speaking about the primary variables that affected the most recent week’s mortgage rate trends. “This coming week, we expect rates to remain stable unless Wednesday’s Federal Open Market Committee’s announcement or Friday’s jobs report reveals unexpected news.”
Zillow’s rates, as stated on the company’s disclaimer, are not to be confused with a weekly survey, and are culled from thousands of custom mortgage quotes submitted to anonymous borrowers on the company’s website.
Zillow also offered some predictions regarding yesterday’s Mortgage Bankers Association mortgage application index. According to the company, purchase loan activity was expected to decline 4 percent from the previous week. This turned out to be a bit steeper than expected, as the MBA’s Market Composite Index, which combines purchase and refinance mortgage applications, dropped by 2.2 percent for the week ended July 25, with seasonality taken into account.
With seasonality, the MBA’s refinance index dropped 4 percent, while the agency’s purchase index ticked up by 0.2 percent. There was no change, however, when it came to 30-year fixed-rate mortgages. 30-year FRM rates were steady at 4.33 percent, remaining unchanged from the prior week on record.
A look at the major states covered by the Zillow Mortgages tracker shows that some states experienced double-digit increases in 30-year fixed mortgage rates. In California, mortgage rates increased by 13 basis points, moving up from 3.98 percent to 4.11 percent for the week ended July 29.
Rates were also up quite significantly in Massachusetts, where the average rate on a 30-year fixed-rate mortgage soared by 11 basis points, advancing from 3.94 percent to 4.05 percent. In New York, mortgage rates on 30-year fixed products experienced a near double-digit climb, moving up nine basis points from 3.96 percent to 4.05 percent.
Conversely, there were also a few states where the most recent week’s mortgage rate hikes were not as strongly felt. In Illinois, 30-year FRMs were up by just two hundredths of a percentage point, going up from 3.99 percent to 4.01 percent.
In Pennsylvania and Washington state, 30-year FRMs added four basis points – for the former state, rates were up from 3.96 percent to 4.00 percent, and for the latter, 30-year fixed mortgage rates ticked up from 3.99 percent to 4.03 percent.