Mortgage rates cruised higher in the Atlanta area this week.
Key 30-year rate rises
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Atlanta area climbed to 3.85%. Not only did the local rate increase 3 basis points from last week, but it exceeded the national average rate of 3.60%. A basis point is one-hundredth of 1 percentage point.
The average mortgage in our survey this week had .50 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have grown," says Holden Lewis, Bankrate's senior mortgage analyst.
The climb in the mortgage rate lifted 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $773.53, an addition of $2.83 from last week.
Other mortgage types rise
The rate for 30-year jumbo mortgages also trended upward this week, ramping up 13 points to 3.69%. Jumbo loans are used for mortgages that exceed limits set by the Federal Housing Finance Agency that can range from $417,000 to $625,000, depending on the location.
The average rate for 15-year fixed-rate mortgages rose to 3.02%, growing 2 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates trending down, dropping $1.79 to $697.42.
"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less lucrative than it would have been before the rate rise," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate increased to 3.28% this week, a rise of 4 basis points. The most common variety of variable-rate mortgage, 5/1 ARMs allow property owners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after.
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Weekly mortgage survey
|Results from Bankrate's July 20 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in Atlanta.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.85%||3.02%||3.28%||3.69%|
|Change from last week:||+0.03||+0.02||+0.04||+0.13|
|Change from last week:||+$2.83||+$1.59||+$3.63||+$30.77|