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Thirty-Year Loan Slides to New Low Amid Downgrades

The 30-year fixed-rate mortgage slid to 3.35 percent, setting a new low for ""Zillow"":http://www.zillow.com/, as Europe braced for another wave of credit downgrades.

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The real estate Web site found the 15-year home loan averaging 2.8 percent, while interest rates for 5-year and 1-year adjustable-rate mortgages each hovered at 2.52 percent.

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""Rates dropped to a new low this week on concerns about Spain's deteriorating economy coupled with Moody's downgrade of the stronger eurozone countries,"" ""Erin Lantz"":http://www.zillow.com/profile/Erin-Lantz/, director of Zillow Mortgage Marketplace, said in a statement.

She added that Zillow expects mortgage rates to remain near record lows as investors keep watch on economic stability in Europe.

""This coming week, we expect rates to hover at record lows as investors remain concerned about eurozone economic stability and continue to flock to the relative safety of U.S. Treasuries and mortgage backed securities.""

Mortgage rates zigzagged lower across the country, falling by as much as 10 basis points in Florida.

According to ""Business Insider"":http://www.businessinsider.com/moodys-puts-core-europe-on-downgrade-watch-2012-7, ""Moody's Investors Service"":http://www.moodys.com/ downgraded three European countries ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô Germany, Luxembourg, and the Netherlands ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô on Monday, citing risk from the ongoing debt crisis.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.
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