A number of closely watched mortgage rates were down in the Atlanta area this week.
Benchmark 30-year rate shows decline in Atlanta
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 diminished to 3.95%. While the local rate was still above the national average rate of 3.64%, it was down 1 basis point from last week. A basis point is one-hundredth of 1 percentage point.
In this week's survey, the mortgages had an average of 0.40 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," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage fell to $782.99, dropping $0.95 from last week, corresponding with the slip in mortgage rates.
No clear direction for other Atlanta mortgage types
On the other hand, the average rate for 30-year jumbo mortgages didn't register a change this week, remaining at 3.69%. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Atlanta area, that limit is $417,000.
The average rate for 15-year fixed-rate mortgages dropped to 3.04%, dipping 2 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates on the decline, falling $1.59 to $1,142.64.
"The 15-year fixed is a popular mortgage for homeowners who want to refinance. With this downward trend in the 15-year fixed, a refinance will be more advantageous to some homeowners," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate rose 2 points this week, rising to 3.56%. 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.
RATE SEARCH: Compare mortgage rates in your area now.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 10/19/2016. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in the Atlanta area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.95%||3.04%||3.56%||3.69%|
|Change from last week:||-0.01||-0.02||+0.02||N/C|
|Change from last week:||-$0.95||-$1.59||+$1.85||N/C|