30-Year Fixed Mortgage Rate Falls Below 3.5 Percent for the First Time

SEATTLE, Jun 19, 2012  -- The 30-year fixed mortgage rate on Zillow(R) Mortgage Marketplace is currently 3.48 percent, down eight basis points from 3.56 percent at this same time last week. This represents the lowest rate reported since Zillow Mortgage Marketplace launched in April 2008. The previous low was 3.56 percent, first reported one week ago on June 12. The 30-year fixed mortgage rate steadily declined for the majority of the week, jumping to 3.5 percent on Monday before falling to the current rate this morning.

"Even though the Greek election outcome improved the likelihood that Greece would remain in the Eurozone, rates experienced a very muted boost from the news, and ended the week down slightly from the prior week, surpassing the 3.5 percent milestone," said Erin Lantz, director of Zillow Mortgage Marketplace.

"Over the past couple of weeks, even ostensibly significant events like the Greek election or the Spanish bailout have failed to push rates outside the current range for an extended time period. So, with limited economic news or international events scheduled for this coming week, we think this inertia will remain, keeping rates within the historically low range we've enjoyed for the past month," added Lantz.

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.

The rate for a 15-year fixed home loan is currently 2.88 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 2.51 percent.

Below are current rates for 30-year fixed mortgages by state. Additional states' rates are available at: http://www.zillow.com/mortgage-rates.

About Zillow Mortgage Marketplace
Zillow Mortgage Marketplace, operated by Zillow, Inc., is a free, open, and transparent lending marketplace, where borrowers connect with lenders to find loans and get the best mortgage rates. Borrowers anonymously submit loan requests and receive an unlimited number of custom mortgage quotes with real rates directly from thousands of competing lenders. Zillow Mortgage Marketplace also provides mortgage calculators, mortgage advice, mortgage widgets, and lender directories.