Mortgage rates spiked late last week after the European Central Bank (ECB) agreed to purchase European bonds to contain the eurozone debt crisis. However, the spike was short-lived and rates ended the week up only slightly as a weak U.S. jobs report offset enthusiasm for the ECB rescue plan..
"This coming week, we expect rates to remain steady as the market awaits direction from the Federal Reserve coming out of the Federal Committee (FOMC) meeting this Wednesday and Thursday. Although there is no clear consensus about what the Federal Reserve will decide, many expect the Federal Reserve will announce new stimulus plans or at least extend forward guidance to assure markets that the Federal Reserve won't increase the federal funds rate until 2015 or beyond. Assuming the Federal Reserve meets these expectations, we expect rates to remain fairly steady since the market has already priced in expectations for further Federal Reserve assurances," added Lantz.
The rate for a 15-year fixed home loan is currently 2.75 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 2.41 percent.
These Rates are based on Zillow's real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgage Marketplace site, and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey.
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