By: Ryan Schuette

Interest rates for the benchmark 30-year fixed-rate mortgage plunged to 3.72 percent this week on new concerns about debt crises in Europe, according to real estate company Zillow.

In releasing the Zillow mortgage Marketplace, the Web site found that interest rates for the 15-year loan also fell to 3.01 percent, alongside 2.63 percent for 5-year and 1-year adjustable-rate mortgages (ARMs).

“The thirty-year fixed mortgage rate fell late in the day on Monday due to a renewed concern about Greece’s unfinished debt restructuring negotiations,” Erin Lantz, director of Zillow mortgage Marketplace, said in a statement.

“Though strides have been made elsewhere in the EU to implement stricter budget discipline, as long as Greek uncertainty persists, mortgage rates will remain historically low as investors look to Treasury and U.S. mortgage bonds,” she added.

mortgage rates remain low despite uplifting news from the continent, where 25 eurozone nations signed off on a new fiscal pact Monday, allowing stocks and shares in Europe to snag an updraft.

Interest rates for mortgage loans accordingly plummeted by 10 to even 20 basis points in several states.

Colorado led the way down with a 20 basis-point plunge, finding a decline in rates for the 30-year fixed-rate loan to 3.7 percent this week from 3.9 percent last week.

Spiraling down by 19 basis points, Massachusetts followed with a dip from 3.86 percent last week to 3.67 percent this week.

Florida and Illinois each saw their interest rates tick down by 18 basis points, with 30-year loans falling to 3.68 percent and 3.7 percent this week, down from 3.86 percent and 3.88 percent, respectively.

Interest rates for fixed-rate mortgages in New York meanwhile fell from 3.84 percent to 3.69 percent, reflecting a decline by 15 basis points.

Rhona Jukes mortgage Specialist This e-mail address is being protected from spambots. You need JavaScript enabled to view it 661 505-4335

Authors: Rhona Jukes

Read more http://realestatemarbles.com/rjukes/2012/02/01/debt-crises-send-mortgage-rates-plummeting/