Zillow Mortgage Rates Rise to 6.20% for 30-Year Fixed Loans
Zillow’s Lender Marketplace reported the average 30-year fixed mortgage rate rose from 6.09% last week to 6.20% this week, while 20-year fixed loans average 6.01% and 15-year fixed loans 5.58%. Refinance rates also ticked higher, with the 30-year fixed refinance rate at 6.18%.
1. Weekly Rate Increase
Zillow’s lender marketplace shows the average 30-year fixed mortgage rate at 6.20%, up from 6.09% last week and 6.05% two weeks ago. The 20-year fixed rate averages 6.01%, the 15-year fixed 5.58%, the 5/1 ARM 6.12% and the 7/1 ARM 5.96%.
2. Refinance Rate Trends
Refinance rates have also edged higher, with the 30-year fixed refinance rate at 6.18%, the 20-year fixed at 6.08% and the 15-year fixed at 5.64%. VA and adjustable-rate refinance products likewise saw modest increases, narrowing the spread with purchase rates.
3. Borrower Impact
Higher rates translate into larger monthly payments, for instance a $300,000 mortgage at 6.20% yields a $1,837 principal and interest payment and $361,467 in interest over 30 years. This cost increase may deter both purchase and refinance activity.
4. Zillow Marketplace Implications
Sustained rate increases could dampen loan originations and reduce lender marketplace transactions, potentially slowing revenue growth and user engagement on Zillow’s mortgage platform.