National 30-year Fixed Mortgage Rate Falls Below 5.00%; Half of Borrowers Request Refinance Loans

RISMEDIA, October 7, 2009—The weekly average rate borrowers were quoted on Zillow Mortgage Marketplace for 30-year fixed mortgages decreased last week to 4.96%, down from 5.02% the week prior, according to the Zillow Mortgage Rate Monitor, compiled by real estate website Zillow.com. Rates for 15-year fixed mortgages fell to 4.39% from 4.42%, and 5-1 adjustable rate mortgages fell to 3.85%, down from 3.94% the week prior. 

The volume of mortgage requests increased significantly last week from 10,963 to 13,081. Of this week’s requests, 50.2% were for refinance loans, 47.7% were for purchase loans and 2.1% were for home equity loans. Last week, 43.7% of requests were for refinance loans, 54.1% were for purchase loans and 2.2% were for home equity loans. 

                                        Average Rate                      Average Rate
Mortgage Type   Week ending 10/4/09       Week ending 9/27/09       % Change
30-year fixed                    4.96%                                      5.02%                        -1.2%
15-year fixed                     4.39%                                      4.42%                        -0.7%
5-1 ARM                            3.85%                                      3.94%                        -2.3% 

Rates for 30-year fixed purchase mortgages decreased further, with the average rate on Zillow Mortgage Marketplace at 4.94%. Thirty-year fixed mortgage rates varied by state. Oregon mortgage rates and Ohio mortgage rates decreased the most, from 5.10% to 4.97% in Oregon and from 5.13% to 5.03% in Ohio. Illinois mortgage rates (5.16%), Maryland mortgage rates (5.10%) and New York mortgage rates (5.10%) were the highest in the country, while Texas mortgage rates (4.88%) and California mortgage rates (4.89%) were the lowest. 

For more information, visit www.Zillow.com.