Average 30-year fixed-rate mortgages in the US slipped in the latest week, achieving a continued downward trend in recent months.
According to Zillow Mortgage Marketplace, 30-year fixed loans dropped to 3.6 percent from 3.63 percent in the previous week due to concerns about Europe’s economic condition, especially on fears that Spain’s banking system could worsen the debt crisis.
Meanwhile, average rates for 15-year fixed loans slipped to 2.91 percent from 2.93 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) remained flat at 2.54 percent.
For weeks, Zillow forecasted that mortgage rates would remain relatively unchanged due to the gloomy outlook in the Eurozone.
“Looking ahead, rate fluctuations will continue to be driven by news from Spain and Greece, in particular Greek elections that will likely determine the country’s fate in the euro zone,” said Erin Lantz, Director of Zillow Mortgage Marketplace.
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