Zillow Mortgage Rates Reach Three-Month High with 30-Year at 6.12%
Zillow data shows the average 30-year fixed mortgage rate climbed to 6.12%, matching mid-December levels and marking a three-month high, while the 15-year fixed rate rose to 5.65%. Refinance rates also peaked, with the 30-year refinance rate at 6.22% and the 15-year at 5.76%, potentially slowing refinancing activity.
1. Mortgage Rate Update
Zillow data shows the average 30-year fixed mortgage rate climbed to 6.12%, matching mid-December levels and marking a three-month high, while the 15-year fixed rate moved up to 5.65%. The uptick reflects bond market pressure linked to global tensions that have driven yields higher.
2. Refinance Rate Trends
Refinance rates also increased, with the 30-year refinance average at 6.22% and the 15-year refinance at 5.76%, narrowing the spread between purchase and refinance costs. This convergence could dampen homeowner incentive to refinance and reduce volume for Zillow’s mortgage services.
3. Rate Forecast Outlook
MBA projections indicate 30-year rates will hover around 6.10% through late 2026, and Fannie Mae forecasts an average near 6.0% in 2027. Persistently elevated rates may constrain housing market activity and limit growth in Zillow’s referral and financing revenue.