Several key mortgage rates tapered off in the Los Angeles area this week.
Benchmark 30-year rate falls in Los Angeles
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Los Angeles area dropped to 4.19 percent. While the local rate was down 3 basis points from last week, it was higher than the national average rate of 4.11 percent. A basis point is one-hundredth of 1 percentage point.
This week, the mortgages averaged 0.06 discount and origination points.
The drop in the 30-year fixed will benefit those who waited to lock on a rate, as that turned out to be a smart bet.
Monthly payments on a hypothetical $165,000 mortgage fell to $805.92, dipping $2.88 from last week, corresponding with the drop in mortgage rates.
Other Los Angeles mortgage types mixed
The average rate for 30-year jumbo mortgages fell this week, down 6 basis points to 3.97 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Los Angeles area, that limit is $636,150.
The average rate for 15-year fixed-rate mortgages held tight at 3.44 percent. Monthly payments on a hypothetical $165,000 15-year fixed-rate mortgage held, staying at $1,174.70.
The 15-year fixed is a popular mortgage for homeowners who want to refinance. Rates standing pat doesn't help or hurt for refinancers thinking about locking soon.
The benchmark 5/1 adjustable-rate mortgage rate fell to 3.69 percent this week, a drop of 3 basis points. 5/1 adjustable-rate mortgages allow property owners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after. They are the most popular type of variable-rate mortgage.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted July 19, 2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $636,150 in the Los Angeles area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.19%||3.44%||3.69%||3.97%|
|Change from last week:||-0.03||N/C||-0.03||-0.06|
|Change from last week:||-$2.88||N/C||-$2.80||-$21.92|
Methodology: The "Bankrate.com National Average," or "national survey of large lenders," is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We've conducted this survey in the same manner for more than 30 years, and because it's consistently done the way it is, it gives an accurate national apples-to-apples comparison.
To learn more about the different rate averages Bankrate publishes, see "Understanding Bankrate's Rate Averages."