Interest rates on 30-year fixed-rate mortgages fell for the first time in three weeks, offering a glimmer of hope for a housing market that still faces plenty of obstacles. Interest rates are historically low, which may boost home loan refinancing activity and also makes homes more affordable, real estate website Zillow.com said on Tuesday.
Mortgage rates on 30-year fixed mortgages, the most widely used loan, were 4.25 percent Tuesday afternoon, down from 4.32 percent at the same time last week, according to Zillow Mortgage Marketplace. Fifteen-year fixed mortgage rates were 3.73 percent, down from 3.76 percent the prior week. Rates for 5/1 adjustable-rate mortgages, or ARMs, set at a fixed rate for five years and adjustable each following year, were 3.13 percent, down from 3.27 percent the prior week.
Mortgage rates may continue to head lower. Treasuries rallied on Tuesday as investors stampeded into safe-haven long-term U.S. debt.