Refinance Requests Up 230 Percent as Mortgage Rates Continue Downward Spiral

30-Year Rate Now at 4.98%, According to Zillow(R) Mortgage Rate Monitor

SEATTLE, Dec. 16 /PRNewswire/ — The continued and dramatic fall of mortgage rates this week led to a flood of refinance requests on Zillow Mortgage Marketplace, accounting for more than half of all requests. Refi requests are up 230 percent in the first half of December, compared with the first half of November.

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The weekly average rates for 30-year fixed mortgages declined to 5.15 percent, down from 5.34 percent the week prior, according to the Zillow Mortgage Rate Monitor, compiled by leading real estate Web site Zillow.com(R). Rates for 15-year fixed mortgages decreased to 5.00 percent, down from 5.16 percent and 5-1 adjustable rate mortgages increased slightly to 5.94 percent from 5.93 percent.

                               Average Rate            Average Rate
    Mortgage                   Week ending             Week ending
     Type                       12/14/08                 12/7/08      % Change

    30-year fixed                 5.15%                   5.34%         -3.5%
    15-year fixed                 5.00%                   5.16%         -3.1%
    5-1 ARM                       5.94%                   5.93%          0.2%

Rates for 30-year fixed mortgages remained fairly steady on Monday evening with the average rate on Zillow Mortgage Marketplace at 4.98 percent.

At a state level, the 30-year fixed mortgage rate in Tennessee had the biggest decrease, falling from 5.40 percent to 5.09 percent. Rates on 30-year fixed mortgages were lowest in the states of Georgia (5.07%) and Tennessee (5.09%), while Illinois (5.27%) and New York (5.25%) had the highest rates.

                             Average 30-yr.        Average 30-yr.
                               Fixed Rate            Fixed Rate
                              Week ending           Week ending
    State                      12/14/08               12/7/08        % Change

    Arizona                      5.22%                  5.37%          -2.9%
    California                   5.14%                  5.36%          -4.1%
    Colorado                     5.19%                  5.36%          -3.3%
    Connecticut                  5.15%                  5.32%          -3.1%
    Florida                      5.14%                  5.31%          -3.3%
    Georgia                      5.07%                  5.19%          -2.2%
    Illinois                     5.27%                  5.37%          -1.8%
    Maryland                     5.20%                  5.34%          -2.6%
    Massachusetts                5.14%                  5.32%          -3.4%
    Minnesota                    5.11%                  5.26%          -2.8%
    Missouri                     5.15%                  5.32%          -3.3%
    New Jersey                   5.19%                  5.40%          -3.8%
    New York                     5.25%                  5.44%          -3.5%
    North Carolina               5.10%                  5.33%          -4.3%
    Oregon                       5.11%                  5.27%          -3.0%
    Pennsylvania                 5.16%                  5.33%          -3.1%
    Tennessee                    5.09%                  5.40%          -5.7%
    Texas                        5.11%                  5.31%          -3.8%
    Virginia                     5.17%                  5.38%          -4.0%
    Washington                   5.10%                  5.28%          -3.4%

The Zillow Mortgage Rate Monitor is compiled each week using thousands of mortgage rates quoted on Zillow Mortgage Marketplace (www.zillow.com/mortgage) by mortgage lenders to borrowers who have submitted loan requests. State-level data is gathered for the top 20 states with the highest quote volume on Zillow.

Zillow Mortgage Marketplace is an open and transparent lending marketplace, providing borrowers an anonymous and hassle-free way to receive an unlimited number of customized mortgage quotes directly from confirmed lenders.

For more detailed rate charts and data, as well as choices of mortgage calculator, please visit www.zillow.com/mortgage.

About Zillow Mortgage Marketplace

Zillow Mortgage Marketplace is an online mortgage resource allowing borrowers to anonymously request an unlimited number of personalized loan quotes from confirmed mortgage professionals, for free. Zillow Mortgage Marketplace educates borrowers with tools such as mortgage calculators, rate tables, and informational resources on obtaining a home loan. In April 2008, Zillow Mortgage Marketplace launched in affiliation with Zillow.com, one of the most visited U.S. real estate Web sites. Zillow’s goal is to help people become smarter about real estate in every stage of the home ownership process — buying, selling, remodeling and financing. The company is headquartered in Seattle and has raised $87 million in funding.

Zillow.com and Zillow are registered trademarks of Zillow, Inc.

SOURCE Zillow.com