Fixed Mortgage Rates in U.S. Plunge to 16-Month Low

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According to Zillow, the 30-year fixed mortgage rate is currently 3.81 percent, down fifteen basis points from this time last week.

The 30-year fixed mortgage rate dropped Wednesday, then hovered around 3.88 percent for most of the week before falling to the current rate.

"Rates dropped to the lowest level since June 2013 on news that the Federal Reserve has more reservations about the health of the U.S. and global economy than expected, which in turn, may delay rate hikes," said Erin Lantz, vice president of mortgages at Zillow. "With little economic news planned to overshadow the Fed's latest comments, this week we expect rates to fairly remain stable, hovering just shy of 4%."

The rate for a 15-year fixed home loan is currently 2.96 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 2.70 percent.