US 30-yr mortgage rates fell in latest wk-Zillow

NEW YORK Aug 17 (Reuters) - Interest rates on 30-year fixed-rate mortgages edged lower in the latest week, real estate website Zillow.com said on Tuesday.

Low rates on mortgages should boost home loan refinancing and put more cash into consumers' hands to funnel into the economy. They also make homes more affordable as the housing market copes with the absence of government support.

Mortgage rates on 30-year fixed mortgages, the most widely used loan, were 4.28 percent on Tuesday afternoon, down from 4.30 percent at the same time last week, according to Zillow Mortgage Marketplace.

That matches the rate reported on August 3, 2010 and is the lowest rate reported since Zillow Mortgage Marketplace launched in April 2008.

The 30-year fixed mortgage rate fell sharply on Thursday to 4.25 percent then remained stable near 4.29 percent for the remainder of the week, Zillow said.

Interest rates on other types of mortgages were mixed.

Fifteen-year fixed mortgage rates were 3.86 percent, unchanged from the prior week. Rates for 5/1 adjustable-rate mortgages, or ARMs, set at a fixed rate for five years and adjustable each following year, were 3.23 percent, down from 3.27 percent the prior week.

Zillow's rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers through the website. They are not marketing rates, or a weekly survey.

Mortgage rates are linked to yields on Treasuries and yields on mortgage-backed securities. Yields move inversely to price.

Mortgage rates may move higher.

Treasuries sold off on Tuesday as investors took profits in long-dated U.S. debt.

(Editing by Chizu Nomiyama)